Gotham Organization Secures $235M for Lower East Side Tower Project
Real Estate In-Depth | December 29, 2020
NEW YORK—Gotham Organization, in partnership with Goldman Sachs Urban Investment Group, has closed on a $162.35-million loan from co-lenders, Wells Fargo Bank, N.A and U.S. Bank, N.A. In addition, Goldman Sachs Urban Investment Group, in collaboration with Gotham, is also investing more than $70 million to complete the capitalization of the 55 Suffolk St. development.
On the heels of the project’s successful rezoning, the financing will advance the first phase of development, a 30-story residential building at 55 Suffolk St. When completed, the project will consist of 378 new residential rental residences, including 25% permanently affordable homes, neighborhood retail and a 40,000-square-foot headquarters for The Chinese American Planning Council.
The development will enhance CPC’s community services and support the creation of a new mixed-use development in Manhattan’s Lower East Side neighborhood, creating a larger, more accessible facility for CPC, Gotham officials stated.
Subject to the city’s infusion of the requisite subsidized mortgage financing, the second phase of development to build a 16-story senior affordable housing building is expected to start in the spring on the basis that HPD has awarded more than $3 million per year in 9% federal low-income housing tax credits for 60 Norfolk St. In addition to much-needed senior housing, 60 Norfolk St. will also create a new congregation space and cultural heritage center for the Beth Hamedrash Hagadol Synagogue.
“The completion of this financing—during one of the most economically challenging years in recent memory—is a testament to the strength of this partnership and the tenacity of the entire team,” said Bryan Kelly, president of development of the Gotham Organization. “We are grateful for the support and collaboration of all our many partners to move this important project forward, bringing not only new housing, but dedicated affordable senior housing, permanently affordable housing and new facilities for BHH and CPC.”
In total, the development is expected to create 493 new rental units, including 209 permanently affordable units with 115 units dedicated to affordable senior housing—all envisioned in direct response to the community’s growing need. Approximately 18,600 square feet of retail space for small-scale retailers is also included within the Suffolk building.
“We are proud to expand our commitment to bring affordable housing to the Lower East Side,” says Margaret Anadu, managing director and Head of the Goldman Sachs Urban Investment Group. “This project shows that with a focus on community engagement, and collaboration across the public and private sectors, we can ensure this vibrant neighborhood remains a place of opportunity for years to come.”
For more than 50 years CPC has been a community-based social services organization working to provide education, family support and economic empowerment to families and individuals across New York City. CPC’s partnership with the Gotham Organization originated following an extensive RFP process in 2016. The organization is the nation’s largest Asian American social services organization and is the trusted partner to more than 60,000 individuals and families.
“CPC is excited to build our permanent headquarters and community center in a neighborhood that we have served for over 50 years. We look forward to developing affordable housing for seniors and other community members, as well as expanding our services for the community,” said Wayne Ho, president and CEO of CPC. “This project will give CPC the opportunity to continue being a community anchor as we work to promote the social and economic empowerment of Asian American, immigrant, and low-income communities of New York City. We thank Gotham Organization and many other stakeholders for their partnership on this project.”