Joint Venture Also Closes Construction Financing for the
Development Located at 601 W. 29th Street
NEW YORK & LOS ANGELES--(BUSINESS WIRE)--
Real estate private equity funds managed by affiliates of Ares
Management Corporation (NYSE:ARES) and Douglaston Development announced
today that they have established a joint venture to develop 601 W. 29th
Street (a/k/a 311 Eleventh Avenue), a 931-unit luxury mixed-use
residential development located at the intersection of Manhattan’s West
Chelsea and Hudson Yards neighborhoods.
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The joint venture also announced today that it has received construction
financing for the project from a syndicate of banks led by HSBC, with
co-lenders Bank of China and Landesbank Hessen-Thüringen (“Helaba”) with
participation in the loan facility from Santander Bank and Raymond James
Bank. The joint venture also closed upon the acquisition of
approximately 120,000 square feet of air rights from Hudson River Park,
with the proceeds going towards funding significant park improvements in
the neighborhood.
“Douglaston is thrilled to kick-off our new partnership with Ares on
this ground-breaking development,” said Jeffrey Levine, Chairman of
Douglaston Development. “I am very proud of my team for how far along we
have come with this project. It took multiple years to get this very
complicated nearly 1-million-square-foot site rezoned and assembled.”
Added Douglaston Development President Steven Charno: “Structuring a
project of this scale requires a sophisticated team and we’re proud to
work with such an esteemed partner and group of lenders. Upon
completion, 601 W. 29th Street will sit on the High Line at the
crossroads of Hudson Yards and West Chelsea and will be a great addition
to a changing landscape.”
“On behalf of our investors, Ares is excited to continue its investment
in high-growth urban areas with the construction of this premier
project,” said Andrew Holm, Partner in the Ares Real Estate Group. “Ares
has consistently focused on the development of core, high-quality real
estate in gateway markets. With a prime location in a rapidly
transforming neighborhood, this project exemplifies many attributes of
our investment criteria. We look forward to bringing this project to
fruition and building upon a strong relationship with Douglaston, an
established New York developer that recognized the potential of this
site early on and spent years bringing the project to where we are
today.”
Spanning a full block on 11th Avenue between 29th and 30th Streets, 601
W. 29th Street will rise 58 stories, providing residents with
unobstructed views in all directions, ease of access to the cultural
amenities of Hudson River Park and the Chelsea neighborhood, as well as
direct access to the heart of Hudson Yards, Manhattan’s preeminent
mixed-use neighborhood. The project is being designed by FXCollaborative
(formerly FXFowle Architects) with a vision of bringing together
distinctive architecture and efficient units with an expansive suite of
lifestyle-oriented amenities. The market-leading,
50,000-plus-square-foot amenity package will include an expansive
fitness center, multiple outdoor terraces, a pool, private cabanas,
resident lounges, and pet daycare. 601 W. 29th Street will be comprised
of 931 residential units (697 market rate and 234 affordable units), 186
parking spaces and 15,000 square feet of Class-A retail space.
Demolition and site work are already underway, and the project is
expected to open in late 2022.
Greystone Bassuk served as exclusive adviser to the joint venture on the
debt and equity raises.
About Ares Management Corporation
Ares Management Corporation is a publicly traded, leading global
alternative asset manager with approximately $137 billion of assets
under management as of March 31, 2019 and 18 offices in the United
States, Europe, Asia and Australia. Since its inception in 1997, Ares
has adhered to a disciplined investment philosophy that focuses on
delivering strong risk-adjusted investment returns throughout market
cycles. Ares believes each of its three distinct but complementary
investment groups in Credit, Private Equity and Real Estate is a market
leader based on assets under management and investment performance. Ares
was built upon the fundamental principle that each group benefits from
being part of the greater whole. For more information, visit www.aresmgmt.com.
About Douglaston Development
Douglaston Development is a vertically-integrated private development
firm. The New York based company was founded 40 years ago by Jeffrey E.
Levine, the company’s chairman. Douglaston has built its business by
identifying transformative, large-scale development opportunities, often
in emerging and pioneering neighborhoods, and championing forward
thinking design. Douglaston is one of New York City’s most highly
regarded private developers and has grown to over 200 employees and
completed over $2 billion of ground-up development. The seamless
integration among its development, construction and property management
businesses—Douglaston Development, Levine Builders, and Clinton
Management—gives the firm a unique competitive advantage.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190606005800/en/
Ares Management Corporation:
Media:
Mendel Communications
Bill
Mendel, 212-397-1030
[email protected]
or
Investors:
Ares
Management Corporation
Carl Drake, 800-340-6597
[email protected]
or
Priscila
Roney, 212-808-1185
[email protected]
Douglaston Development:
Cara Gentile
Marino
212-889-9867
[email protected]
Source: Ares Management Corporation
