$42M in Financing Secured for Dobbs Ferry Mixed-Use Project
John Jordan | September 2, 2015
DOBBS FERRY, NY—The developer of the $130-million Rivertowns Square project off the Saw Mill River Parkway here has secured $42 million in construction financing from M&T Bank and promises to resume work on the mixed-use project.
In conjunction with the financing deal, developer Saber Dobbs Ferry, LLC reported that it will stage an official groundbreaking ceremony for the mixed-use project on Oct. 6. Saber Dobbs Ferry is a partnership between Saber D.F., an affiliate of Saber Real Estate Advisors, LLC, and Dobbs Ferry Capital Partners, an affiliate of Chauncey Station Partners, LLC.
In late May, Sabre Real Estate Advisors reported it had completed demolition and commenced construction on the project. However, a company spokesperson said since then there was a lull in construction, but work will pick up now that the construction financing deal has been finalized and that a new hotel operator is about to be named.
The 120,000-square foot mixed-use development is to feature retail and restaurant space as well as a hotel and movie theater. Earlier this summer, Sabre Real Estate reported that “due to timing issues,” XSS LLC, a New Hampshire-based limited liability company, terminated its contract to bring a hotel to Rivertowns Square ahead of the property’s scheduled closing in order to better manage the company’s current projects.
Marty Berger, managing member at Saber Dobbs Ferry, said at the time that construction would be delayed while it conducted a search for a new hotel operator. A spokesperson for Saber Dobbs Ferry said that an announcement regarding a new hotel operator is expected in the next several weeks.
“The closing of the construction loan marks another important milestone in the Rivertowns Square project, and we are thrilled to celebrate the occasion alongside the community members that have helped make this all possible,” Berger said of the M&T financing deal.
Saber Dobbs Ferry, which includes Berger, Michael Klinger, Corey Rabin, Douglas Smolev and Chris Lynch, worked closely with the team from M&T Bank’s Westchester Region to secure the two-year construction loan. The M&T financing team consisted of Michael Weinstock, group vice president and senior commercial real estate manager; Mark Walz, vice president and commercial real estate group manager; and Ryan McAuliffe, vice president and senior commercial real estate relationship manager.
The loan will help support the construction of Rivertowns Square’s retail, dining and entertainment offerings, as well as the structural base of a 138-room hotel.
“Rivertowns Square is an important development project in Dobbs Ferry because it will create a combination of residential and commercial units and provide a number of additional services to the community, including a hotel and great retail space,” said M&T’s McAuliffe. “Saber Dobbs Ferry has a strong vision for the project and we’ve agreed to provide key financing to help bring this investment in the community to fruition.”
In addition to the construction loan, Saber Dobbs Ferry was also approved for a mortgage tax exemption of $551,200 and an estimated sales tax exemption estimated at approximately $2.2 million from the Westchester County Industrial Development Agency.
Confirmed tenants at Rivertowns Square include an eight-screen luxury iPic Theater, Mrs. Green’s Natural Food Market, Ulta Beauty, Chipotle Mexican Grill, Buddha Asian Bistro, Chop’t Salad, Dobbs Ferry Gym and The Learning Experience.
The Rivertowns Square project will create 650 temporary and permanent jobs upon completion. The development will feature a hotel, restaurants, boutiques and entertainment along with 202 luxury apartments, of which 20 will be designated as affordable. The residential component of the project is being developed by Lincoln Properties of Dallas.