Delancey Street Associates, a joint venture of Taconic Partners, L+M Development Partners, BFC Partners, the Prusik Group, and the Urban Investment Group within Goldman Sachs Asset Management, today announced the closing of $466 million in refinancing for Essex Crossing’s 145 Delancey and 155 Delancey. The deal comprises three separate loans: $285 million for the Offices at Essex Crossing, $144 million for The Artisan and $37.1 million for One Essex Crossing.
Provided by Deutsche Bank, the refinancing will replace the site’s construction loans and provide capital to complete the leasing program for the balance of the office and market line space as well as the other outstanding common area commitments made to the city. The $37.1 million loan at One Essex Crossing was provided by Square Mile Capital. JLL and Walker & Dunlop represented Delancey Street Associates in securing the loans.
“We’re pleased to work with Deutsche Bank and Square Mile Capital on this refinancing,” said Chris Balestra, Co-President and Chief Investment Officer of Taconic Partners on behalf of Delancey Street Associates. “The success of this development validates the market demand for live-work-play developments, especially in a post-pandemic era where convenience and accessibility are so desirable. At Essex Crossing, we strive to offer our residents, tenants, and the community a true two-minute-city lifestyle.”
Paving the way for a revitalized commercial landscape, the Offices at Essex Crossing offer exactly what today’s tenant is searching for in a workplace. Comprised of 350,000 square feet across 145 and 155 Delancey, the Offices feature private lobbies and elevators, floor plates ranging from 35,000 – 52,000 RSF for maximum flexibility, two expansive private outdoor terraces and a tenant-controlled HVAC system to help combat the spread of airborne viruses. The Offices at Essex Crossing also include in-office bike storage, showers and lockers, especially suited for those who take advantage of the campus’ 13+ Citi Bike stations, and direct access to the Market Line.
In November, Verizon became the anchor office tenant with its 140,000-square-foot lease in 155 Delancey’s state-of-the-art, Class A office space. The deal demonstrates that atypical office locations continue to become more sought-after as employers seek to offer a cultivated neighborhood experience. As Verizon noticed, the Lower East Side’s accessibility and live-work-play lifestyle makes it the ideal spot to attract and retain talent.
The Artisan, named for the neighborhood’s artistic heritage, boasts 263 market-rate and affordable apartments designed by Handel Architects and Fabienne Benmoha. In-home amenities include Bertazzoni cooktops and ovens, Blomberg dishwashers, in-unit Bosch washers and dryer, views of New York City’s skyline and ample natural light. Select apartments also feature private outdoor space. The building’s world-class amenity package includes landscaped terraces, a fitness center, sky deck, lounge and game room, children’s playroom, and direct access to the Market Line.
Designed by CetraRuddy, One Essex Crossing is a 14-story condominium that spans a full city block and features light-filled residences with skyline views, shared and private outdoor space and indoor/outdoor amenities. The sixth-floor amenity space includes a 9,000-square-foot landscaped garden terrace with city views and an outdoor fitness area. Two glass-enclosed amenity peninsulas house The Fitness Studio with a separate yoga room and The Sun Room, a residents’ lounge with spaces for working and relaxation. Residents also have access to a children’s playroom that serves as an imaginative and engaging space.
Comprised of nine sites, nearly two million square feet and costing an estimated $1.6 billion, the entire Essex Crossing development includes 350,000 square feet of office space; over 1,000 residences; 300,000 square feet of retail; and 100,000 square feet of green space and the recently opened Market Line.
For more information about Essex Crossing, visit https://essexcrossingnyc.com/.
ABOUT TACONIC PARTNERS
Since 1997, Taconic Partners has acquired, redeveloped and repositioned over 12 million square feet of commercial office and mixed-use space, as well as over 6,500 units of luxury and workforce housing. As a fully integrated real estate company with a keen eye for uncovering value, its diverse capabilities are evidenced by its multifaceted success with luxury properties, as well as adaptive reuse and urban revitalization projects. In New York City, Taconic is currently developing 619 West 54th Street—the Hudson Research Center, 125 West End Avenue, 817 Broadway, 312 West 43rd Street and Essex Crossing on the Lower East Side. The firm also manages various real estate funds on behalf of institutional and pension fund investors. For more information, visit www.TaconicPartners.com
ABOUT L+M DEVELOPMENT PARTNERS
Since its inception in 1984, L+M Development Partners Inc. has been an innovator in developing quality affordable, mixed-income and market-rate housing, while improving the neighborhoods in which it works. A full-service firm, L+M works from conception to completion, handling development, investment, construction and management with creativity that leads the industry. L+M is responsible for approximately $10 billion in development and investment, and has acquired, built or preserved nearly 35,000 high-quality residential units in New York’s tristate area, Washington, D.C., the West Coast and Gulf Coast regions. Community leaders, government officials and institutional investors turn to L+M because of its consistent track record of excellence.
L+M is a double bottom line company, where its success is measured not only in financial returns but also by positive impacts. L+M takes pride in its long-standing partnership with the communities it serves, demonstrated through an annual scholarship fund, workforce development programs, after-school programs, and substantial support for local nonprofits. L+M brings a superior level of commitment to its investments in developments, and equally important, to its investment in people. For more information, please visit: http://lmdevpartners.com.
ABOUT THE PRUSIK GROUP
The Prusik Group LLC was formed in 2007 by S. Andrew Katz and Rohan Mehra. The Prusik Group focuses on the development and repositioning of retail real estate assets throughout the Tri-State area. The Prusik Group’s founders have a combined 40 years of design, construction, and development experience ranging from single tenant installations to major urban development sites.
The Prusik Group prides itself on maintaining unparalleled relationships with its retail tenants. Through the development and repositioning of more than 3.0 million SF of retail, office, and residential projects, the founders have established and continue to foster excellent relationships across the industry and throughout the communities with which they have worked. The Prusik Group is currently developing and/or managing more than 3 million SF of real estate in the greater NYC metropolitan area.
ABOUT BFC PARTNERS
BFC has been a developer of affordable and market-rate housing, as well as mixed use projects in New York City for more than 30 years. After starting in the East Village in the 1980s, BFC has established itself as a major developer in Brooklyn, completing the award-winning Toren in Downtown Brooklyn and the award-winning creative office building 1000 Dean Street in Crown Heights. BFC is currently nearing completion on 7 DeKalb at City Point on Flatbush Avenue and has broken ground on the city’s first outlet center on Staten Island. Most recently, BFC was part of a team to be selected by the city to develop Bedford Courts in Crown Heights and Essex Crossing on the Lower East Side. Since the firm’s inception in the 1985, BFC and its principals have completed over $5 billion in development projects, encompassing the construction of more than 8,000 residential units and millions of square feet of mixed-use development.
ABOUT THE GOLDMAN SACHS ASSET MANAGEMENT URBAN INVESTMENT GROUP (UIG)
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), Goldman Sachs Asset Management delivers investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from a deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of September 30, 2021. Driven by a passion for client performance, Goldman Sachs Asset Management seeks to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 2001, the Urban Investment Group within Goldman Sachs Asset Management has committed over $10 billion through real estate projects, social enterprises and lending facilities for small businesses and students, creating economic value and opportunities for underserved communities and families. Follow us on LinkedIn.
