Elliott Funding Administration Gives $196M Refi for Chelsea Multifamily Asset – Business Observer

MaryAnne Gilmartin’s MAG Companions has secured a $196 million refinancing mortgage for its 480-unit mixed-income luxurious rental undertaking within the coronary heart of Manhattan’s West Chelsea neighborhood.

The financing was supplied by funds managed by Elliott Funding Administration, which holds roughly $55.2 billion in property below administration, in a three way partnership with an funding platform fashioned by Adi Chugh, CEO of Surya Capital Companions.

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The refinancing retires an current $173 million development mortgage MAG Companions secured from Madison Realty Capital in October 2020, and comes as the luxurious rental constructing — often known as Ruby, and positioned at 243 West twenty eighth Avenue — has achieved 40 p.c leasing capability lower than 4 months after opening.

“Our perception on this undertaking and this metropolis have been confirmed by the demand we’re seeing for Ruby,” Gilmartin, founder and CEO of MAG Companions, stated in a press release. “We’re proud to have introduced these lovely properties to market by means of a exceptional time in New York Metropolis.”

Matthew Villetto, govt vice chairman, Douglas Elliman Growth Advertising, handles leasing on the undertaking. Viletto instructed Business Observer that each the leasing quantity and lease efficiency at Ruby have been “unprecedented.”

He added that rents for the studios have entered the $5,000-per-month vary, one-bedrooms are within the $7,000-per-month vary, and that two-bedrooms have hovered between $10,000 and $15,000 per 30 days since leasing started in late March.

“It’s a testomony to the power of the New York Metropolis market and the flight to high quality and the precise high quality this constructing is providing,” Villetto stated. “It’s only a actually spectacular and distinctive proposition that {the marketplace} is responding very effectively to.”

The 2-tower property additionally contains 8,500 sq. toes of ground-floor retail area. Constructing facilities embrace a rooftop pool, a personal foyer backyard, a health room, a membership lounge, and a second-floor backyard. Roughly 30 p.c of the constructing’s 480 rental items are reserved for inexpensive housing.

That is the primary New York Metropolis undertaking for Gilmartin’s MAG Companions, which she based in July 2020. MAG Companions has designed, constructed and operated greater than 7 million sq. toes of workplace, residential and mixed-use initiatives, together with greater than 2,000 items of housing, for a complete worth in extra of $4.5 billion.

The West Chelsea undertaking is a three way partnership amongst MAG Companions, Safanad, Atalaya Capital Administration and Qualitas. Safanad is a world holding firm positioned in New York Metropolis and Dubai that has invested greater than $10 billion in varied actual property, schooling, well being care and digital infrastructure initiatives since 2009. Atalaya Capital Administration is a New York Metropolis-based different funding advisory agency with $5 billion in property. Qualitas is a number one actual property funding agency in Australia that has a e-book valued at $8.5 billion.

Ruby highlights yet one more headline between MAG Companions and Safanad. The 2 companies fashioned a non-exclusive three way partnership settlement in November 2020 to pursue New York Metropolis actual property initiatives collectively for ground-up improvement or energetic administration.

“We consider the success of the Ruby is indicative of the resiliency of the New York Metropolis multifamily market and demonstrates the power of our partnership with MAG Companions,” Andrew Trickett, head of investments at Safanad, stated in a press release.

MAG Companions has its eyes fastened on extra New York Metropolis developments. The agency lately started demolition for 2 extra mixed-income residential initiatives: one at 335 Eighth Avenue in Chelsea and one other at 300 East fiftieth Avenue close to the United Nations.

Brian Pascus may be reached at bpascus@commercialobserver.com