A significant transaction in Midtown East is set to pave the way for a new luxury residential development. JLL Capital Markets played a pivotal role, arranging both the acquisition of key development sites and securing substantial pre-development financing. This strategic move positions a joint venture for a prominent new project in a prime Manhattan location.
Key Takeaways
- JLL Capital Markets facilitated the $39 million acquisition of two corner development sites at 1059-1061 Second Avenue.
- $38 million in land and pre-development financing was secured through Maxim Capital Group.
- The joint venture, comprising EJS Group and Krown Point Capital, will develop a luxury residential building.
Strategic Acquisition and Assemblage
JLL Capital Markets represented a joint venture between EJS Group and Krown Point Capital in the acquisition of two contiguous development sites located at 1059-1061 Second Avenue in Midtown East. The deal also included the acquisition of associated air rights, a crucial element for maximizing the potential of the site. The firm’s expertise was instrumental in advising the partnership throughout the complex assemblage process.
This involved acquiring the four buildings situated at the corner of East 56th Street and Second Avenue. Following the separation and transfer of the air rights to the primary corner site, the underlying buildings at 1055-1057 Second Avenue were subsequently sold. This strategic maneuver allowed the joint venture to consolidate the necessary land and air rights for their planned luxury residential project.
Financing Secured for Future Development
In parallel with the acquisition, JLL Capital Markets also successfully secured $38 million in land and pre-development financing for the upcoming luxury residential development. This financing was provided by Maxim Capital Group, underscoring the confidence in the project’s viability and the strength of the development partners.
The JLL Capital Markets team involved in this transaction included the Investment Sales and Advisory team, led by managing director Clint Olsen. The Debt Advisory team, responsible for securing the financing, was comprised of managing director Jillian Mariutti and senior director Stephen Van Leer.