MAG Partners, Safanad secure $151.4M capitalization for new Chelsea multi-housing development

NEW YORK, Jan. 16, 2024 – JLL Capital Markets announced today that it has completed the $151.4 million capitalization of 335 8th Ave., a to-be-built, seven-story, 188-unit, mixed-use building located on the northwest corner of Eighth Avenue and 26th Street in the Chelsea neighborhood of Manhattan. MAG Partners was selected earlier this year through an RFP process by the site’s landowner and affordable housing cooperative, Penn South, to develop a state-of-the-art mixed-use development in the heart of Chelsea, Manhattan. 

JLL represented the borrower, a joint venture of MAG Partners and Safanad, to secure construction financing from Bank OZK and additional financing from MetLife Investment Management.

Designed by renowned local architect COOKFOX to meet demand from renters seeking a vibrant 24-hour community environment within a full-service building, 335 8th Ave. will feature primarily studio and one-bedroom units (90%) with the remainder as two-bedrooms. Sponsorship installed foundations for the development and secured a 421a tax abatement enabling 30% of the apartments to be reserved for low- and middle-income residents.

The building will have over 30,000 square feet of interior and exterior amenities, including a fitness center, library, media lounge, co-working lounge with private workspaces and dining area with catering kitchen. It will also feature a private garden on the ground and second floors, along with a rooftop garden with dining areas and grilling terrace. The development will include 25,461 square feet of retail space to be occupied by Lidl supermarket and 1,150 square feet of community facility space.

The JLL debt advisory team representing the sponsor was led by Managing Director Geoff Goldstein and Senior Directors Jillian Mariutti and Stephen Van Leer. The equity team comprised Senior Managing Directors Rob Hinckley and Jeffrey Julien and Director Nicco Lupo.

“The project’s best-in-class sponsors have a proven track record delivering market-leading properties that offer outstanding investment characteristics. In an otherwise dislocated market, we are thrilled to complete another successful capitalization with leading players committed to developing outstanding projects,” said Hinckley.

“In a market with a 2.1% vacancy rate, 335 8th Avenue’s curated unit mix and high-level amenity package will meet demand from renters seeking to live in a desirable luxury multi-housing development in the highly sought-after neighborhood of Chelsea,” added Mariutti.

Set for completion in Q3 2025, 335 8th Ave. will support sustainable and healthy living. The developer is pursuing both LEED Gold Certification by the U.S. Green Building Council (USGBC) and Passive House certification by the Passive House Institute U.S. (PHIUS), providing cutting-edge sustainability practices embedded throughout.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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