JLL Secures $284M for Condos, Office
JLL Capital Markets, Chicago, raised $251 million in equity and debt to allow CBSK Ironstate, New York, to develop a luxury condominium in Manhattan’s Hell’s Kitchen neighborhood.
The firm raised $70 million in equity from an institutional investor and secured $181 million in construction financing from Deutsche Bank AG for 646 11th Ave. on the city’s west side.
JLL Vice Chairman Aaron Appel, Managing Directors Keith Kurland and Jonathan Schwartz, Executive Vice President Mark Fisher and Associate Douglas Baillie executed the transaction. Appel called Hell’s Kitchen one of the most “vibrant” communities in Manhattan. “The future of the area is being re-shaped with nearly 17 million square feet in retail, commercial and residential space underway. This transaction offered the lenders an opportunity to finance one of New York’s most experienced residential developers in a project with significant risk mitigation.”
The 12-story 646 11th Ave. property is on the east side of 11th Ave. and spans the entire block between W. 47th and W. 48th Streets. The project includes 161,000 net sellable residential square feet, 40,000 rentable square feet of pre-sold retail space and 8,000 square feet of residential amenity space.
CBSK Ironstate is a joint venture formed by CB Developers, SK Development and Ironstate Development.
JLL also secured $32.5 million to refinance Somerset Corporate Center IV, a 310,000-square-foot, Class A office building in Bridgewater, N.J. Sterling National Bank, New York, supplied the loan to owners SJP Properties, New York, and PGIM Real Estate, Newark, N.J.
Schwartz and Appel led the team handling the debt assignment with JLL Executive Vice President Brett Rosenberg.
“The property is centrally located within one of the country’s strongest corridors for the pharmaceutical and technology sectors,” Schwartz said.
Somerset Corporate Center IV is part of the master-planned Somerset Corporate Center, which dates to 2001 and includes five office buildings totaling 1.25 million square feet where I-287 and I-78 and state routes 202/206, 22 and 28 meet.
