NEW YORK, July 12, 2022 /PRNewswire/ — Newmark arranged the financing of Manhattan’s most anticipated luxury waterfront residential development, and the last remaining block at St. John’s Terminal in Manhattan’s West Village. The joint venture—Zeckendorf Development (“Zeckendorf”), Atlas Capital Group (“Atlas”) and The Baupost Group—secured a $322 million financing package from Blackstone. The loan proceeds will be used to fund both a portion of the land acquisition and the pre-development work for the project, which is valued at $1.25 billion. The 1.3-acre development site permits over 600,000 square feet of predominately residential space.
Encompassing a full city block, the two-tower design will rise 430 feet and offer unmatched Hudson River views and an industry-leading amenity package. The project is the product of an extensive rezoning process, which was led by Atlas for the entire St. John’s terminal site, spanning almost four city blocks. As part of the rezoning, the former ownership group paid $100 million to the Hudson River Park Trust in exchange for unused air rights.
“We are pleased to have provided financing for the first stage of what will be an unprecedented, one-of-a-kind development,” said Michael Eglit, Head of U.S. Originations in Blackstone’s Real Estate Debt Strategies. “We look forward to the completion of this project and to our continued investment activity here in New York City.”
Zeckendorf, known for record breaking projects, such as 15 Central Park West and 520 Park Avenue, will lead the design and development. The result will yield a unique collection of homes with expansive layouts, outdoor space, ultra-luxury finishes and unparalleled views, complemented by a comprehensive amenity package. The project is a rare opportunity, which will ultimately create a skyline-defining residential property designed by renowned architect COOKFOX. Zeckendorf’s selection of the waterfront site as its signature downtown project speaks volumes of the company’s conviction, thesis and legacy.
Over the coming months, the developers will continue to refine the design with COOKFOX and prepare to commence foundation work. With Zeckendorf’s ultra-luxury development experience and unique operational knowledge—through its ownership in the largest privately owned NYC residential brokerage—combined with Atlas’ successful development track record and detailed knowledge of the property’s history and entitlement process, the project will be a distinct and premier location in downtown Manhattan.
About Zeckendorf Development
Zeckendorf Development is a privately owned real estate development firm headed by Arthur, William and Artie Zeckendorf, the multi-generational New York real estate family, which became known for selling the United Nations its 17-acre East Side location and more recently developing 15 Central Park West and 520 Park Avenue. Over the last 20 years, Zeckendorf Development has developed over 1,000 apartments with over $10 billion of gross sellout. Zeckendorf’s projects have become the gold standard for ultra-luxury condominiums. Buyers have included captains of industry and distinguished celebrities. Unlike other developers, Zeckendorf does not develop for volume but for performance and rarely has more than two other developments proceeding at the same time.
About Atlas Capital Group, LLC
Atlas Capital Group, LLC is a full-service real estate investment, development, and management firm. The firm was founded in 2006 by Jeffrey A. Goldberger and Andrew B. Cohen to invest in opportunistic and value-added real estate transactions in core gateway cities, with a primary focus on New York and Los Angeles. Atlas’ vertically-integrated team includes more than 100 professionals staffed across real estate disciplines, including construction, leasing, development, asset management, property management, accounting, and legal. To date, Atlas has invested over $4 billion of equity in the United States across 65 office, retail, residential, industrial, and mixed-use real estate investments, comprising approximately 14 million square feet and over $7 billion of total capitalization.
About The Baupost Group
The Baupost Group is a Boston-based investment manager with a long-term, collaborative approach. Since 1982, the firm has been thoughtfully stewarding and compounding capital on behalf of families, foundations and endowments, as well as employees who collectively are the firm’s largest client. Today Baupost manages roughly $29 billion. With a broad and flexible charter, and depth of experience across all asset classes and market environments, Baupost is strongly positioned to evaluate and pursue longer-duration and highly complex opportunities, and to structure transactions flexibly to meet the requirements of sellers.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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