Essex Crossing Developers Score $466M Refinancing Package
Delancey Street Associates, the development partnership behind Essex Crossing, has secured a huge new loan package across three deals that should help complete the 1.9M SF Lower East Side megaproject.
Deutsche Bank and Square Mile Capital which joined forces to provide a total of $466M, including a $285M bridge loan from Deutsche to complete The Offices at Essex Crossing, The Real Deal reported.
Taconic Partners, L+M Development, BFC Partners, Prusik Group and Goldman Sachs Asset Management’s Urban Investment Group partnered almost a decade ago on the project, which is expected to eventually cost $1.6B to develop.
Essex Crossing contains more than 1,000 apartments and 300K SF of retail space, 100K SF of open space and 350K SF of not-yet-complete office space. Verizon is among its first tenants, signing a deal for 143K SF across three floors last fall.
The infusion of capital will help Delancey Street Associates finish the office space and lease its remaining square footage before the developers seek permanent financing for the project.
Deutsche Bank also provided a $144M, five-year loan on the $263M mixed-use building at 180 Broome St., known as the Artisan. Square Mile, meanwhile, provided a $37.1M inventory loan for One Essex Crossing, a condo building Taconic Partners’ Chris Losco told TRD is already more than half sold.
Capital markets unpredictability and rising interest rates pose a significant challenge for projects in need of further funding, although the loans were negotiated before interest rates began trending upward, TRD reported.
CORRECTION, JUNE 14, 6:30 P.M. ET: A previous version of this story incorrectly categorized the entire financing package as a bridge loan. This story has been updated to reflect the three different loan types in the refinancing.