Dealmaker: Greystone Arranges $415M for Hudson Yards Development

Greystone, New York, arranged a $415 million construction loan for Douglaston Development’s 931-unit mixed-use residential development at 601 W. 29th Street on Manhattan’s Far West Side.

A syndicate of banks led by HSBC including co-lenders Bank of China and Landesbank Hessen-Thüringen provided the $415 million construction loan. Santander Bank and Raymond James Bank also participated in the facility.

Greystone’s Structured Finance Group, led by President Drew Fletcher, served as exclusive advisor for Douglaston Development and joint venture partner Ares in arranging the full capital stack for the project. Ken Lore, Real Estate Practice Head with Katten Muchin Rosenman LLP, served as transaction counsel for the joint venture with Shapiro & Gellert PLLC.

Greystone Executive Managing Director Paul Fried raised joint-venture equity with support from Vice President Matthew Hirsch and Associate Bryan Grover. An Ares Management affiliate committed to invest joint venture equity into the project.

Spanning the full block on 11th Avenue between 29th and 30th Streets, 601 W. 29th Street will occupy the crossroads of two Manhattan neighborhoods, West Chelsea and Hudson Yards. It will include 697 market-rate rental units and 234 units reserved for residents earning an average of 60 percent of area median income. 601 W. 29th Street will also host 15,000 square feet of Class A retail.

Demolition and site work are underway and the venture said it expects the property to open in 2023.

Douglaston Development entered the Far West Side market in 2010 with 369-unit residential property OHM on the corner of 30th Street and 11th Avenue in West Chelsea. Over nearly five years, Douglaston assembled and rezoned OHM’s large, underused project site and structured a 99-year ground lease for the property located directly on the High Line elevated park.