Newmark and Greystone Secure $560 Million Refinancing on Behalf of Ares Management and Douglaston Development for 3ELEVEN
Newmark Group, Inc. (Nasdaq: NMRK) and Greystone Capital Advisors have successfully arranged a $560 million floating-rate debt refinancing for 3ELEVEN, a luxury apartment tower in Manhattan. The financing was secured on behalf of Ares Management and Douglaston Development.
3ELEVEN is a 60-story, 938-unit property located near Hudson Yards. Completed just over a year ago, it is 99% leased and benefits from a 35-year tax abatement under New York State's 421-a program. The building offers a range of apartments and premium amenities, including a pool, fitness center, and multiple outdoor areas.
This refinancing replaces the previous HSBC construction loan and demonstrates Newmark's ability to navigate complex market conditions and deliver results for clients.
Newmark Group, Inc. (Nasdaq: NMRK) e Greystone Capital Advisors hanno concluso con successo un rifinanziamento del debito a tasso variabile da 560 milioni di dollari per 3ELEVEN, una torre di appartamenti di lusso a Manhattan. Il finanziamento è stato assicurato per conto di Ares Management e Douglaston Development.
3ELEVEN è un immobile di 60 piani e 938 unità situato nei pressi di Hudson Yards. Completato poco più di un anno fa, è affittato al 99% e beneficia di un
Questo rifinanziamento sostituisce il precedente prestito per costruzione di HSBC e dimostra la capacità di Newmark di navigare in condizioni di mercato complesse e ottenere risultati per i clienti.
Newmark Group, Inc. (Nasdaq: NMRK) y Greystone Capital Advisors han logrado con éxito un refinanciamiento de deuda a tasa flotante de 560 millones de dólares para 3ELEVEN, una torre de apartamentos de lujo en Manhattan. El financiamiento fue asegurado en nombre de Ares Management y Douglaston Development.
3ELEVEN es una propiedad de 60 pisos y 938 unidades ubicada cerca de Hudson Yards. Completada hace poco más de un año, está alquilada en un 99% y se beneficia de una exención fiscal de 35 años según el programa 421-a del Estado de Nueva York. El edificio ofrece una variedad de apartamentos y comodidades premium, incluyendo una piscina, un gimnasio y varias áreas al aire libre.
Este refinanciamiento reemplaza el préstamo de construcción anterior de HSBC y demuestra la capacidad de Newmark para navegar en condiciones de mercado complejas y ofrecer resultados a sus clientes.
뉴마크 그룹(Nasdaq: NMRK)와 그레이스톤 캐피탈 어드바이저스가 맨해튼의 호화 아파트 타워인 3ELEVEN을 위해 5억 6천만 달러 규모의 변동 금리 채무 재조정을 성공적으로 마련했습니다. 이 자금 조달은 Ares Management와 Douglaston Development를 대신해 확보되었습니다.
3ELEVEN은 허드슨 야드 근처에 위치한 60층, 938유닛 건물입니다. 1년 조금 넘게 완공된 이 건물은 99% 임대 중이며, 뉴욕주 421-a 프로그램에 따라 35년 세금 감면 혜택을 받고 있습니다. 이 건물은 수영장, 피트니스 센터 및 여러 야외 공간을 포함한 다양한 아파트와 프리미엄 편의 시설을 제공합니다.
이번 재조정은 이전의 HSBC 건설 대출을 대체하며, 뉴마크가 복잡한 시장 환경을 성공적으로 항해하고 고객에게 결과를 제공하는 능력을 보여줍니다.
Newmark Group, Inc. (Nasdaq: NMRK) et Greystone Capital Advisors ont réussi à organiser un refinancement de dette à taux variable de 560 millions de dollars pour 3ELEVEN, une tour d'appartements de luxe à Manhattan. Le financement a été sécurisé au nom de Ares Management et Douglaston Development.
3ELEVEN est un immeuble de 60 étages et 938 unités situé près de Hudson Yards. Achevé il y a un peu plus d'un an, il est loué à 99% et bénéficie d'une exonération fiscale de 35 ans dans le cadre du programme 421-a de l'État de New York. Le bâtiment propose une gamme d'appartements et des commodités de premier plan, y compris une piscine, un centre de fitness et plusieurs espaces extérieurs.
Ce refinancement remplace l'ancien prêt de construction de HSBC et démontre la capacité de Newmark à naviguer dans des conditions de marché complexes et à obtenir des résultats pour ses clients.
Newmark Group, Inc. (Nasdaq: NMRK) und Greystone Capital Advisors haben erfolgreich eine Refinanzierung von schwankenden Schulden in Höhe von 560 Millionen Dollar für 3ELEVEN, einen luxuriösen Wohnhochhaus in Manhattan, arrangiert. Die Finanzierung wurde im Auftrag von Ares Management und Douglaston Development gesichert.
3ELEVEN ist eine 60-stöckige, 938-Einheiten Immobilie, die in der Nähe von Hudson Yards liegt. Etwas mehr als ein Jahr nach der Fertigstellung ist sie zu 99 % vermietet und profitiert von einer 35-jährigen Steuerbefreiung im Rahmen des 421-a-Programms des Bundesstaates New York. Das Gebäude bietet eine Vielzahl von Wohnungen und erstklassige Annehmlichkeiten, darunter einen Pool, ein Fitnesscenter und mehrere Außenbereiche.
Diese Refinanzierung ersetzt das vorherige Baukredit von HSBC und zeigt Newmarks Fähigkeit, sich in komplexen Marktbedingungen zurechtzufinden und Ergebnisse für die Kunden zu liefern.
- Successful arrangement of $560 million refinancing for a luxury apartment tower
- 99% occupancy rate for the 938-unit property
- 35-year tax abatement secured through the 421-a program
- Prime location near Hudson Yards with high-end amenities
- None.
Insights
The $560 million refinancing of 3ELEVEN, a luxury apartment tower in Manhattan, is a significant development in the commercial real estate sector. This transaction, replacing the HSBC construction loan, demonstrates strong investor confidence in the New York City multifamily market, particularly in high-end properties near Hudson Yards.
Several factors make this deal noteworthy:
- The property's 99% occupancy rate just one year after completion indicates robust demand for luxury rentals in this area, despite concerns about the NYC rental market post-pandemic.
- The 35-year tax abatement through the 421-a program significantly enhances the property's long-term value and cash flow stability. With this program now discontinued, properties like 3ELEVEN have a competitive advantage in the market.
- The
$560 million refinancing suggests a substantial valuation for the property, likely exceeding$700 million based on typical loan-to-value ratios for stabilized multifamily assets.
From an investor's perspective, this refinancing potentially allows Ares Management and Douglaston Development to recapitalize their investment, possibly extracting equity while securing favorable terms in a challenging lending environment. The floating-rate structure of the new debt also provides flexibility, which could be advantageous if interest rates decline in the future.
Overall, this transaction underscores the resilience and attractiveness of well-located, high-quality multifamily assets in prime urban markets, even amidst broader economic uncertainties.
The refinancing of 3ELEVEN offers valuable insights into the current state of the luxury multifamily market in New York City:
- Location Premium: The property's position near Hudson Yards, the High Line and the Hudson River exemplifies the continued demand for amenity-rich neighborhoods. This 'live-work-play' environment commands premium rents and attracts high-income tenants.
- Amenities Arms Race: The extensive amenity package at 3ELEVEN, including a pool, fitness center and coworking spaces, reflects the ongoing competition among luxury developments to offer lifestyle-enhancing features. This trend is likely to continue, potentially raising the bar for future developments.
- Affordable Housing Component: The inclusion of affordable units, while mandated by the 421-a program, also addresses the growing emphasis on mixed-income developments in urban centers. This model may become more prevalent as cities grapple with housing affordability issues.
The
Looking ahead, the success of 3ELEVEN may influence future development patterns in the area. We might see increased interest in large-scale, amenity-rich projects that can justify premium rents. However, with the 421-a program no longer available, developers may face challenges in making new projects financially viable, potentially leading to a slowdown in new luxury rental supply in the coming years.
"Securing favorable financing terms for this complex transaction demonstrates our team's unique ability to navigate the complexities of the market and deliver outstanding results for our clients," said
"We are thrilled to have facilitated this significant refinancing for 3ELEVEN, highlighting the exceptional quality and appeal of the property and reflecting the strong collaboration between Ares,
Completed just over one year ago, the
3ELEVEN offers apartments ranging from studios to three bedrooms, with premium amenities such as a pool with cabanas, a fitness center with a yoga studio, a theater, coworking spaces with conference rooms, music practice rooms and multiple outdoor gathering areas, including a 42nd-floor terrace and dedicated dog runs.
About Greystone
Greystone is a national commercial real estate lending, investment, and advisory company known for its leadership in multifamily and healthcare finance. Services include commercial lending through various platforms such as Fannie Mae, Freddie Mac, CMBS, FHA, USDA, bridge, and mezzanine loans. Greystone Capital Advisors is a full-service real estate capital intermediary and advisory team serving prominent real estate owners and developers across the
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ended December 31, 2023, Newmark generated revenues of approximately
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.
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SOURCE Newmark Group, Inc.
FAQ
What is the value of the refinancing arranged by Newmark (NMRK) for 3ELEVEN?
Who are the owners of the 3ELEVEN property that Newmark (NMRK) secured refinancing for?
What is the current occupancy rate of 3ELEVEN as mentioned in Newmark's (NMRK) announcement?
What tax benefit does 3ELEVEN receive, as stated in Newmark's (NMRK) press release?
