A consortium of developers has successfully locked in $173 million in financing to construct a new 479-unit rental property in Chelsea. The new building will take shape at 241 West 28th Street, near Eighth Avenue, and is designed by COOKFOX.
The construction financing was arranged by Maverick Commercial Properties and the developing entities include MAG Partners, Atalaya, Safanad, and Qualitas. MAG Partners originally acquired the site in December 2018 and established a 99-year ground lease with Edison Properties.
“We are excited to have the opportunity to be a part of this partnership group, led by one of New York’s most respected developers, MaryAnne Gilmartin,” said Andrew Trickett, head of investments at Safanad. “With our entry in this transaction concurrent with the closing of this loan, we are now poised to deliver a market-leading asset in an irreplaceable location in a city that we believe will come back stronger than ever in the coming years.”
As part of the Affordable NY program, 30 percent of the units will be reserved for low and middle-income households.
“As true believers in the future of New York City, we are thrilled to be able to begin construction on this innovative project that will bring mixed-income housing and hundreds of jobs at a critical time for the city,” said MaryAnne Gilmartin, founder and CEO of MAG Partners. “This is an incredibly desirable location as major tech companies continue to sign big leases within walking distance, and we expect to see very strong long-term demand for this property when it opens in 2022.”
Permits to construct the property were originally filed with the Department of Buildings in September 2019. Those documents specified that the structure would top out at 113 feet above ground and yield just over 248,000 square feet. This included approximately 214,000 square feet of residential space and about 10,500 square feet of lower-level retail.
Those permits also called for 266 residences, which is significantly fewer than the 479 units announced by MAG Partners. Therefore, it is likely that those original filings are out of date.
241 West 28th Street is expected to be complete in the latter portion of 2022.