Delancey Street Associates has closed on a $466 million refinance consisting of three separate loans from Deutsche Bank and Square Mile Capital.
The New York-based joint venture of Taconic Partners, L+M Development Partners, BFC Partners, the Prusik Group and Goldman Sachs Asset Management’s Urban Investment Group secured the debt funding on June 10.
The refinancing package includes a $285 million loan from Deutsche Bank for the offices at Essex Crossing, a $144 million loan from Deutsche Bank for The Artisan apartment complex and a $37.1 million loan from Square Mile Capital for One Essex Crossing.
The refinancing will replace the site’s construction loans and tack on additional capital to resolve the leasing program for the balance of the office and market line spaces as well as other common area commitments. JLL and Walker & Dunlop represented the joint venture in securing the financing.
Speaking on behalf of Delancey Street Associates, Taconic Partners co-president and CIO Chris Balestra said the success of the development validates the market demand for live-work-play developments in a post-pandemic era where convenience and accessibility are very desirable.
The entire Essex Crossing development is spread across nine sites and 2 million square feet, costing an estimated $1.6 billion to date.
The JV refinancing package marks one of the more sizable debt deals in New York in recent months. At the end of 2021, a $1.25 billion debt package was lined up by L&L Holding Company and Columbia Property Trust to redevelop New York’s Terminal Warehouse with backing from Blackstone Real Estate Debt Strategies and Oaktree Capital Management.