The closing of construction financing was announced for a new 47-story mixed-use residential development at 550 Tenth Avenue in Hell’s Kitchen. The project is developed by Gotham Organization and Goldman Sachs Asset Management JV in a joint venture equity partnership, with Wells Fargo and US Bank providing a $212 million construction loan, and Lionheart Strategic Management providing $35 million in mezzanine financing.
Handel Architects is designing the 430,000-square-foot tower with 453 units, consisting 316 market rate residences and 137 moderate and middle-income homes. Additional components include 9,000 square feet of retail and 26,764 square feet of office space. Covenant House will use the the office space for administrative purposes for its new 80,000-square-foot international headquarters located nearby at 460 West 41st Street. Covenant House’s now vacant facility on Tenth Avenue was purchased by the Goldman Sachs Asset Management JV, making the 550 Tenth Avenue development possible as well.
“Facilitating Covenant House’s move into its new home is an accomplishment we are incredibly proud of,” said David Picket, president of Gotham Organization. “Working hand-in-hand with such an important social services organization has been a very rewarding experience. This is yet another example of how public-private partnerships can have a real impact on the city and better the services available to our community’s most vulnerable residents.”
Both market-rate and affordable housing residences will have access to a 10,700-square-foot amenity suite on the eighth floor of 550 Tenth Avenue, with two outdoor terraces. A fitness center will feature new cardio equipment, weightlifting areas, a yoga room, and stretching space. An interior lounge space will be designed to function as a coworking space during the day, with individual work stations and a conference room. There will also be a rooftop lounge and outdoor landscaped roof deck on the 45th floor, giving residents unobstructed southern views of Manhattan, Brooklyn, and New Jersey across the Hudson River.
“We are thrilled to partner with Gotham on the next phase of this highly impactful project, which will provide Covenant House with state-of-the-art office space and amenities to advance their critical work of supporting vulnerable young adults across the city and around the world,” said Michael Lohr, vice president in the Urban Investment Group within Goldman Sachs Asset Management.