$56M construction financing secured for multi-housing property
JLL Capital Markets secured the loan on behalf of SMA Equities for the 108-unit, 90,000-square-foot, mixed-use residential building
NEW YORK, July 1, 2021 — JLL Capital Markets announced today it has secured $56 million in construction financing for the development of 202 E. 23rd St., a mixed-use, passive house designed, multi-housing property consisting of 108 units, located on the corner of Third Avenue and 23rd Street in the Gramercy Park submarket of Manhattan.
JLL represented the sponsor, SMA Equities, to place the construction loan with Bank Leumi USA. Senior Managing Director Evan Pariser with JLL represented the borrower.
202 E. 23rd St. is a 20-story, 90,000-square-foot, mixed-use residential building that will consist of 80 market-rate units and 28 affordable housing units. Floorplan options includes studio, one- and two-bedroom apartments. Built under the Affordable New York 421-a program, the property will feature a passive house design along with high-end amenity spaces and ground-floor retail. The passive house design provides superior air quality with optimal eco-friendly climate control.
The project is being developed on two adjacent lots, offering 47 feet of frontage along Third Avenue and 100 feet of frontage along East 23rd Street. Building features include bike storage, 24/7 doorman services, package room, tenant lounge, shared workspace, fitness center, roof deck and a 20th floor lounge. Unit features include high energy efficiency and thermal/air quality, wood flooring, stainless steel appliances and an in-unit washer/dryer.
Located in Manhattan’s Gramercy Park neighborhood, the property is two blocks from the 4 and 6 subway lines and only three blocks from the N, Q, R, and W lines providing direct access throughout Manhattan and the outer boroughs. The project is in walking distance of the East Village, NoMad and Flatiron, providing tenants with exceptional access to a wide range of neighborhood amenities.
“We are thrilled to be developing an environmentally friendly project in the heart of the most prestigious neighborhood in New York City, Gramercy. We believe passive house and environmentally conscious developments are the way of the future. This is our fourth residential ground up project consisting of an affordable component in New York but the first Eco-friendly to passive house standard,” said Samy Mahfar, co-principal of SMA Equities.
“This project highlights SMA Equities’ success, diligence and resilience throughout the battle of the pandemic,” said Pariser. “This property combines distinct architectural elements and passive house features that will prove to be remarkably comfortable for residents in addition to being highly energy efficient.”
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 advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About SMA Equities
SMA Equities is a New York-based real estate firm that invests as a principal in multi-family, retail, office, mixed-use properties and land. The firm’s investments are nationwide, with the largest share of assets located within the greater New York metropolitan area. Started in 1986, SMA Equities has excelled as an active hands-on organization focused on real estate investment, development and operations.
SMA Equities has managed and developed over 5 million square feet of residential, retail and office throughout the country. In addition, the firm has developed more than 3,000 acres in New York, New Jersey and Florida.