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HFF Announces $260M Financing for 202 Broome Street at Essex Crossing

Mon August 06, 2018 - Northeast Edition #16
Holliday Fenoglio Fowler L.P.


A Rendering 202 Broome Street at Essex Crossing in Manhattan.  (Delancey Street Associates photo)
A Rendering 202 Broome Street at Essex Crossing in Manhattan. (Delancey Street Associates photo)

Holliday Fenoglio Fowler L.P. (HFF) announced the closing of a $260 million construction loan for 202 Broome Street at Essex Crossing in Manhattan.

The HFF team worked on behalf of the borrower, a joint venture between Taconic Investment Partners, L+M Development Partners, BFC Partners and Goldman Sachs Urban Investment Group, to secure the 42-month construction loan through Square Mile Capital Management LLC.

Essex Crossing is one of the most significant urban renewal developments in the history of Manhattan. Construction began in spring 2015 and upon completion, the nine sites will total more than 1,000 residences, 450,000 sq. ft. of retail and 400,000 sq. ft. of office space alongside community attractions and green space.

202 Broome Street is scheduled for delivery in 2020 and will consist of a 16-story mixed-use building with 179,234 sq. ft. of Class A office space, 36,888 sq. ft. of retail space and 83 luxury condominiums. The condominiums, located on floors six through 13, will consist of studio, one-, two- and three-bedroom units, with nearly 30 percent featuring private outdoor space. The sixth floor also will offer a common roof terrace for condominium owners with sweeping views in all directions.

202 Broome Street also will contain a portion of the Market Line, a below-grade, world-class marketplace spanning three city blocks that will feature a food hall, various large and small businesses and will be anchored by the historic Essex Street Market.

Essex Crossing is situated within walking distance of the Williamsburg Bridge and benefits from access to transportation with J, Z, F and M train service at the Essex Street Station and B/D train service at Grand Street.

The HFF debt placement team representing the borrower included senior managing directors Evan Pariser and Michael Gigliotti, managing director Scott Aiese, associate Alex Staikos and analyst Jackie Ferrer.

“We are thrilled to have closed this transaction with Square Mile Capital who differentiated themselves following a highly competitive marketing effort run by HFF,” said Chris Balestra at Taconic Investment Partners. “The Square Mile team's ability to navigate the complexities of underwriting and developing a large scale mixed use development proved to be critical in completing our financing.”

“We continue to see very compelling opportunities for debt investments in the New York market,” added Square Mile's Sean Reimer. “The Essex Crossing project is a great example — a transformative development being created by a strong, visionary ownership group. We are delighted to have had this opportunity to participate and we are confident in its success.”

About Taconic Investment Partners LLC

Taconic Investment Partners LLC (Taconic) was formed in 1997 and has since acquired and developed more than 12 million sq. ft. of Class A and Class B office properties in the New York metropolitan area, Chicago, Washington, D.C., and Atlanta. Taconic targets acquisitions of office properties in major central business districts while focusing on multifamily properties in markets that house the CBD's employment base. Totaling in excess of $3 billion, the majority of the company's acquisitions have focused on assets with significant value-add and/or redevelopment potential.

Taconic is the largest operator of commercial property in the Meatpacking District and West Chelsea neighborhood, controlling more than 3 million sq. ft. of commercial space. Led by its founders, Paul Pariser and Charles Bendit, the firm specializes in the acquisition, asset management, leasing, property management and development and construction management of office, retail and residential properties.

For more information, visit taconicinvestments.com.

About L+M Development Partners

L+M Development Partners is a full-service development, investment, construction and management firm with more than $7 billion invested across New York's Tri-State area.

About BFC Partners

Over the past 25 years, BFC Partners has been one of NYC's most active developers of prominent mixed-use projects, having completed $1.5 billion in projects with an additional $1 billion currently under development.

About Goldman Sachs Urban Investment Group

The Goldman Sachs Urban Investment Group (“UIG”) is a domestic, multi-asset class investing and lending business that provides capital primarily to public-private real estate developments. UIG deploys Goldman Sachs' capital by making investments and loans that benefit urban communities. Through its comprehensive community development platform, UIG has committed nearly $7 billion since it was founded in 2001, which has facilitated the creation and preservation of more than 24,000 housing units — the majority of which are affordable to low, moderate and middle-income families — as well as more than 2 million sq. ft. of community facility space and more than 6.5 million sq. ft. of commercial, retail, and industrial space. Since 2014, UIG has committed a total of $500 million in equity and debt to the Essex Crossing project.

About Square Mile Capital Management

Square Mile Capital Management LLC is an integrated institutional real estate finance and investment management firm based in New York. Square Mile's large U.S. footprint, enhanced by the firm's strategic partnership with USAA Real Estate Company, enables Square Mile to leverage proprietary market insights through a unified sourcing and investment philosophy that positions the firm to capitalize upon opportunities through all phases of the commercial real estate cycle. Square Mile's opportunistic investment platform takes a value oriented approach to its activities, with an emphasis on opportunities to acquire or capitalize real estate assets or enterprises that are undervalued, complex or undercapitalized. Square Mile's commercial real estate debt platform provides customized capital solutions for real estate owners and developers throughout the United States.

For more information, visit squaremilecapital.com.

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing.

For more information, visit hfflp.com.