Square Mile Capital and Pacific Western Bank will provide $183 million in construction financing for a 12-story mixed-use property at 258-278 Eighth Avenue in Chelsea.
The project includes a new Target store occupying 28,000 sq. ft. at lower levels, and above them, 190 rental apartments, New York YIMBY reports.
Construction is expected to start at the beginning of 2022.
The website says public records identify Chelsea 23rd Realty, a LLC associated with JJ Operating, as acquiring the property in 2017. Financing was arranged by Alchemy-ABR Investment Partners, the project’s co-developers.
“We are bullish on the long-term demand prospects for high quality, transit-oriented multifamily product in New York City, and believe there will be substantial demand upon delivery in 2023,” said Square Mile Capital vice-president Eric Juster.
“We are proud to announce the closing of this transaction, which highlights the continued faith in the recovery of New York City,” said Kenneth Horn, co-founder and partner of Alchemy-ABR Investment Partners, and Joel Breitkopf, co-founder and partner of Alchemy-ABR Investment Partners in a joint statement, “We are confident in our investment and optimistic about the strong demand for a high-quality rental offering in Chelsea, one of Manhattan’s most dynamic neighborhoods.”
The development site occupies 40,000 sq. ft., from West 23rd Street to West 24th Street. Businesses there include a CVS Pharmacy, The Gap, and a New York Sports Club. Demolition permits for the existing building were filed with the New York City Department of Buildings in April 2021, New York YIMBY says.