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L&L MAG's First Project Will Be An Apartment Building In Chelsea

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L&L MAG's First Project Will Be An Apartment Building In Chelsea
L&L MAG CEO MaryAnne Gilmartin and B6 Real Estate Advisors CEO Paul Massey

MaryAnne Gilmartin kicked off 2018 by leaving Forest City to found her own firm, backed by the owners of L&L Holding Co. To close it out, the company has announced its first project, a large apartment building in Chelsea, which it plans to start constructing next year.

The project will be a 460-unit rental building at 241 West 28th St. in Chelsea, L&L MAG announced Monday. The building will be developed under the Affordable New York program, with 30% of the apartments set aside for low- and middle-income renters. COOKFOX will design the building.

“We founded L&L MAG to pursue projects that provide value to the community we are building in, to enhance the fabric of our city architecturally and to deliver value to our partners, and I am thrilled that our first development delivers on all of those principles,” L&L MAG CEO MaryAnne Gilmartin said in a statement.

The site of the new building, a block-through parking lot, is owned by Edison Properties. L&L MAG has signed a 99-year ground lease with Edison and will build a public parking garage with the building as part of the arrangement.

Atalaya Capital Management and Qualitas, an Australian asset manager, are partnering with L&L MAG on the project. It is Qualitas' first investment in the U.S.

“We brought together the perfect team for this project — Atalaya and Qualitas — and have shown we can advance the most complex deals in a very short period of time. We are going to pursue a diverse set of projects across sectors and expect this will be the first of many," Gilmartin said.

Qualitas will use the deal to launch future investment in the U.S., establishing a New York office, co-founder Mark Fischer said. The firm sought gateway city investments in multifamily, and found it needed to partner with a local like Gilmartin to accomplish that goal.

An Edison executive told The Real Deal that L&L MAG's offer on the site was not the highest the New Jersey-based team received, but they were convinced by the team Gilmartin had assembled and her reputation.

“You can get away with a lot in this town,” Gilmartin said at Bisnow’s New York State of the Market event last month. "You can build forgettable buildings that deliver tremendous returns, and you can make a shit ton of money. I don't want to do that.”

Related Topics: MaryAnne Gilmartin, L&L MAG