CSC Real Estate has successfully secured a substantial $108 million construction loan to facilitate the transformation of a prominent Manhattan office building into much-needed residential units. The financing, provided by SCALE Lending, will enable the conversion of 770 Second Avenue in Murray Hill into a vibrant residential complex.
Key Takeaways
- A $108 million construction loan has been secured by CSC Real Estate.
- The funds will be used to convert 770 Second Avenue in Murray Hill into residential units.
- The project will add 140 new homes, including 35 affordable units, to the neighborhood.
Project Details and Financing
The 17-story, 237,000-square-foot property at 770 Second Avenue is set for a significant overhaul. CSC Real Estate acquired the building for $52 million and plans to convert 12 of its floors into 140 residential units. This development will also introduce approximately 11,000 square feet of new amenity space for residents. A notable aspect of the conversion is the inclusion of 35 affordable housing units, contributing to New York City’s housing goals.
SCALE Lending, the debt financing arm of Slate Property Group, provided the $108 million construction loan. The financing was arranged by Arrow Real Estate Advisors, with Morris Betesh, Morris Dabbah, and Louis Halperin representing the lender. CSC Real Estate was advised by Vedder Price LLP, with Robert Salame leading the legal team.
CSC Real Estate’s Vision
Salo Smeke, principal of CSC Real Estate, expressed pride in advancing the repositioning of 770 Second Avenue. "Our team is proud to advance the repositioning of 770 Second Ave. and deliver high-quality housing to New York City," Smeke stated. He emphasized the trust institutional partners place in CSC due to their ability to manage complex projects with precision and accountability. The significant market interest in this project underscores the confidence in CSC’s development platform.
Beyond this current project, CSC Real Estate has indicated plans to announce three additional conversion transactions in prime urban neighborhoods, signaling continued growth and strategic investment in the residential sector.