Bank of New York is leading a $83 million construction loan for a multifamily high rise in Manhattan that will be the first environmentally sustainable apartment building in the United States, according to Real Estate Finance & Investment, an LMW sister publication. The bank is looking for about five banks to round out the syndicate on the loan for Albanese Development Corp., said George Aridas, senior v.p. at Albanese. The three-year loan includes a one-year extension option and is priced at LIBOR plus 212. Albanese tapped BNY to lead the loan because of its capabilities to syndicate and its competitive fees, he said. Bank of New York officials declined to comment.
The 262-unit luxury residential development will be located in Battery Park City. The building will use natural gas and solar energy to provide central heating and cooling, Aridas said. It will use 35% less energy than a comparable apartment building due to the use of solar power and window design. "We will have better indoor air quality by introducing fresh-filtered treated air into the building," he said, adding that it will be more comfortable for allergy-sufferers. The building also has a water recycling program that will treat and pipe in recycled water for toilets, using about 40% less water than similar buildings. A portion also will be constructed from recycled materials and organic chemicals will be used in the paints and flooring materials. Ground-breaking is expected next month.
About 13 banks attended the bank meeting, including Bank of Nova Scotia, Bank Leumi, Wells Fargo, Apple Bank, Bank of East Asia and CFS Bank. Another attendee, Westdeutsche Immobilien Bank, has already committed $40 million to the project. Additional commitments are due mid-March. The project has a total cost of $113 million, with $30 million in equity provided from Albanese and its equity partner, Northwestern Mutual Life.