Report: Essex Crossing Receives $250M Loan from Wells Fargo and Citibank
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The game-changing Essex Crossing mega-project just received a monster cash infusion to proceed. Wells Fargo and Citibank together loaned Delancey Street Associates – the development consortium comprised of L+M Development Partners, BFC Partners and Taconic Investment Partners – more than $250 million in construction financing.
The additional financing allows construction to continue on two of the nine SPURA lots, according to a recent report in the Commercial Observer. Specifically, sites 2 and 5, which are already under the knife. And which are potentially atop a mass burial ground that could jeopardize progress.
Wells Fargo provided a $109 million construction loan for work at Site 5, a 211-unit apartment building that will consist of half market-rate and half-affordable rentals, according to the lender. The three-year construction debt covers about 75 percent of the $142 million project, which also includes 66,000 square feet of retail.
Delancey Street Associates additionally closed a $144 million construction loan from Citibank with $15 million in tax-exempt bonds from the New York City Housing Development Corporation for work at Site 2, according to another person familiar with the deal. The Citibank loan covers about 55 percent of Site 2’s $264 million project cost, which includes construction of 195 rental apartments and 188,000 square feet of retail space, that person said.
Site 2 is known as “The Gateway,” and is the marquee component of Essex Crossing. Upon completion in 2018, the 24-story tower will include the newly imagined Essex Street Market and a 14-screen Regal movie theater.