Joint venture partners The Moinian Group and SL Green Realty Corp. have secured $550 million in permanent financing for Sky Residences (“Sky”), a mixed-use residential building. Greystone represented the duo and placed the financing through Freddie Mac. The transaction marks the largest ever single asset tax exempt financing completed by Freddie Mac and its first private placement structure that includes permanent financing for hundreds of affordable housing units in New York City. The funding completes an exit from the original construction financing provided by Bank of China and Union Labor Life Insurance Company in 2014.
Located at 605 West 42nd Street, the building boasts 1,175 units and 70,000 square feet of amenity space in a 71-story tower. The property is the largest single-tower residential building in the United States, with 25 percent of its units designated as moderate and affordable housing. Commercial tenants include Lifetime Fitness, Volvo and Icon Parking and the asset also includes an onsite parking garage.
“While mixed-income multifamily lending deals of this size don’t occur every day, it’s truly gratifying to know that Freddie Mac’s commitment to affordable housing can be applied in such an impactful way,” said Jeff Englund, Senior Managing Director of Greystone’s Affordable Lending group. “Affordable housing is desperately needed in New York and nationwide, and Greystone remains committed to helping to finance transactions that create or preserve this housing for the long-term.”
