Trinity Place Holdings Inc. has closed on $189.5 million in construction financing for its new 300,000-square-foot mixed-use development at 77 Greenwich St. in Lower Manhattan, in New York City.
The project calls for the construction of an approximately 500-foot tall tower building that will contain 90 luxury condominium units, the adaptive reuse of the landmarked Robert and Anne Dickey House, 7,500 square feet of street level retail space, and construction of a new wheelchair-accessible subway entrance on Trinity Place.
The construction loan has a four-year term with one extension option. The loan, in addition to equity already funded by Trinity Place and future contributions by the New York City School Construction Authority, will cover anticipated future costs of the project. The project hard costs are 93% “bought out” and are managed under a gross maximum price construction contract, Trinity Place reports. In its press announcement, Trinity did not provide any further financial details of the transaction, including the identity of the lender.
However, in an 8-K filing with the Securities and Exchange Commission on Tuesday, Trinity Financial revealed the lender in the $189.5-million deal is Massachusetts Life Insurance Co. Trinity in its SEC filing further reports that a portion of the proceeds on the Dec. 22 closing date will repay the outstanding balance of its loan with Sterling National Bank and Israel Discount Bank of New York totaling $40,130,556. The loan with MassMutual has a four-year term with an extension option of one year.
Trinity Place Holdings announced in January 2016 its intent to develop a mixed-use property at the Greenwich Street site. The first eight floors of the new building, along with the landmarked Robert and Anne Dickey House will be converted into 476-seat elementary school serving District 2. Trinity Place and the New York City SCA have entered into an agreement that provides for the design and construction of the core and shell of a pre-kindergarten through fifth grade school. Under the agreement, the SCA will purchase a condominium interest in the project and at substantial completion will finish the interior construction.
The condominium homes along with the subway improvements are scheduled to be completed by year-end 2020. Demolition of the former Sims clothing store site was completed earlier this year. The loan terms call for the completion of construction of the project in 42 months from the date of closing.
Earlier this year, Trinity announced it had agreed to acquire a recently completed rental apartment building in the Park Slope section of Brooklyn for $81 million. The 12-story property at 237 11th St., features 105 units as well as a Starbucks on the ground floor. The deal is expected to close in the first quarter of 2018.
Mark Fisher, Shawn Rosenthal and Alexander Furnary of CBRE acted as exclusive brokers in the financing transaction. Justin DiMare of Newmark Knight Frank represented the seller and Howard Kessler of Newmark Knight Frank represented the purchaser on the SCA land purchase transaction.
James P. Godman, Daniel Berman and Dennis Heyman of Kramer Levin Naftalis & Frankel LLP represented Trinity Place in the transaction and Michael Byrne, Marie Caroline Bertrand and Rosemary G. Ayers of Day Pitney LLP represented the lender.
—Read FSOC Eyes Insurers’ Commercial Real Estate Loan Holdings on ThinkAdvisor.