Macklowe snags $65m loan for condo development

Harry Macklowe of Macklowe Properties has secured a $65m mortgage loan for the acquisition of a mixed-use development project at 985 Third Avenue, on the east side of Midtown Manhattan. The lender of the variable rate loan is Singapore-based bank Domenico PTE, city property records show. Macklowe paid sellers SL Green and Emmes Asset Management a combined $86.9m […]

Harry Macklowe of Macklowe Properties has secured a $65m mortgage loan for the acquisition of a mixed-use development project at 985 Third Avenue, on the east side of Midtown Manhattan.

Harry Macklowe (Photo: The New York Times)
Harry Macklowe (Photo: The New York Times)

The lender of the variable rate loan is Singapore-based bank Domenico PTE, city property records show.

Macklowe paid sellers SL Green and Emmes Asset Management a combined $86.9m for the properties, comprised of the addresses spanning 983-989 Third Avenue. SL Green got circa $55.5m for the component at 983-987 Third Avenue; and Macklowe paid Emmes more than $31.3m for 989 Third Avenue.

The purchase of additional air rights, which boost the potential size of the project to a combined 90,000 buildable square feet, will bring the total acquisition cost closer to $100m, a person familiar with the deal said. New York City developers can purchase undeveloped “air” above or adjacent to a property.

Bob Knakal, chairman of Massey Knakal, the Manhattan-based investment sales firm that marketed the site, said plans include a high-end condominium project set atop a large retail component. Macklowe declined to comment.

Records show that SL Green had paid just $18m for the site in January of last year. It is located across the street from the iconic Bloomingdale’s department store.

Macklowe is also in the midst of building what will become the city’s – and the Western hemisphere’s – tallest residential tower at 432 Park Avenue.

That 84-story building, between 56th and 57th Streets, will feature condominium units range from a 350sf studios to a six-bedroom, seven-bath penthouse with a library, which has reportedly been sold for $95m.

 

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