Bank of America and Wells Fargo are seeking partners to share a $640m construction loan to Tishman Speyer for its $1.1bn development of a three-tower residential scheme in Queens, New York.
The floating-rate, four-and-a-half year facility at 250bps over one-month LIBOR, reflects a loan-to-cost of 55%. The two US banks are believed to be in talks with a number of lenders interested in participating.
The facility will finance the construction of the 1800-unit scheme being developed by property company Tishman and its partners, the Toronto-based H&R Real Estate Investment Trust and an undisclosed third investor. Tishman has a 10% stake in the partnership, H&R has 50% and the third partner, 40%.
Construction has begun at the Long Island City site in Queens, which will see three towers rising to 53, 44 and 33 storeys in height, plus 16,000 sq ft of retail space. The 44-storey tower is expected to be completed first in 2017.
It is the second significant development financing from Bank of America in the past month. It provided $200m to developer Related for its 152,000 sq ft condominium building project in Manhattan’s Tribeca neighborhood.
Wells Fargo recently provided a $98.1m loan to Friedland Properties for a residential development project on the Upper West Side of Manhattan at 2234 Broadway.