Major Financing Secured for Midtown South Residential Tower
A collaborative effort between Sioni Group and AB & Sons has culminated in the acquisition of $275 million in construction financing aimed at developing a highly anticipated residential tower in Midtown South.
Financing Details
The substantial loan was provided by Affinius Capital and InterVest Capital Partners, facilitating the construction of a 72-story multifamily and condominium development located at 986 Sixth Avenue. According to sources familiar with the arrangement, the project is expected to feature 311 residential units, including 284 apartments and 27 condominiums, with completion projected for 2026.
Key Quotes and Perspectives
Perry Katz, Senior Vice President at Affinius Capital, expressed enthusiasm for the project, stating, “We are thrilled to participate in this skyline-defining project and to further strengthen our relationship with Sioni Group and AB & Sons, experienced New York City-based developers, owners and operators.”
Development Background
Leading the development efforts, Ray Yadidi of Sioni Group and Isaac and Eli Chetrit of AB & Sons have been acquiring properties in the Midtown South area since 2007. Their strategic acquisitions have included a vacant hotel purchased for $54.3 million and a 21-story office building valued at $49 million, as reported by The Real Deal.
Market Conditions and Project Timeline
The recent closure of the financing marks a significant milestone after a previous attempt to secure $350 million was hindered by rising interest rates, which delayed progress on the project for nearly three years. The loan agreement now sets the stage for construction to begin in earnest.
Conclusion
As the project gears up, the involvement of seasoned developers and substantial financial backing underscores the potential impact this new residential tower could have on the Midtown South skyline.
For further inquiries, Andrew Coen can be reached at ac***@co****************.com.
