Narrative
Full Description
Project narrative
In January 2016, the Bank of China (BOC) entered into a $320 million USD construction loan agreement with an unspecified special purpose vehicle — a joint venture owned by Bizzi & Partners Development LLC, a New York City-based real estate development firm, Aronov Development Ltd., a Delaware-incorporated real estate company for the Aronov family, Halpern Real Estate Ventures, LLC (HREV), a United States-based real estate investment platform, Cindat Capital Management Limited, a subsidiary of China Cinda Asset Management, a Chinese state-owned private equity investment firm based in Beijing, and SHVO Concepts, LLC, a New York City-based luxury real estate investment and development company — for the 565 Broome SoHo Project. This loan was secured by (i.e. collateralized against) two $250 million USD mortgages on ten lots in Manhattan that 565 Broome Soho was located on. Record ID#107436 captures the BOC loan. The proceeds were to be used by the borrower to construct 565 Broome SoHo, a 330,000-square foot two-spire 290-foot tall, 115-unit luxury mixed-use condominium tower, with the first several floors of each spire connected by a transparent, glass internal “floating park” atrium leading to an outdoor terrace space, with 26,000 square feet of retail space and 10,000 square feet of residential amenities including a 55-foot indoor lap pool, a fitness center, a yoga studio, a sauna and steam room, a children’s playroom, a clubhouse with a library, kitchen and bar, and 40 automated parking spaces with electric charging stations, spanning the block of Varick Street between Broome and Watts streets, specifically at 565 Broome Street (also known as 100 Varick Street) (including a lot at 555 Broome Street), at the intersection of the SoHo, Tribeca, and Hudson Square neighborhoods in Manhattan, New York City, New York. The $750 million USD project was financed by $320 million USD in construction debt and $135 million USD in equity from Cindat, among others. In April 2016, the developers sought to raise money through the EB-5 program, which offers foreigners U.S. visas in return for investments, which normally is done as mezzanine financing, in the Chinese market. The project, having Chinese financing at the debt, equity, and seeking mezzanine debt, raised media speculation that it would be the first major New York development to get funding from all major layers of the capital stack from Chinese sources. The project raised up to $58 million USD of EB-5 money. Prior to the BOC loan, Cindat Capital Management Limited provided a $135 million USD loan to an unspecified special purpose vehicle — a joint venture between Bizzi & Partners Development, Aronov Development, and Halpern Real Estate Ventures — to fund the transition from the acquisition of the 565 Broome SoHo site to the construction loan. Cindat Capital Management Limited's loan was then converted into an ownership stake after close of the loan. Record ID#107440 captures Cindat's loan. In January 2014, Bizzi, Aronov, and Halpern acquired the multi-parcel site at 565 Broome for $152 million USD. Renzo Piano Building Workshop served as project architect. Balmori Associates served as landscape architect. DeSimone Consulting Engineering served as structural engineer. Ettinger Engineering Associates served as mechanical, electrical and plumbing. SLCE Architects and Renzo Piano were joint architects in charge. RDAI was responsible for interior design. International Consulting Services, Inc served as façade consultant. Construction began in December 2015. Completion was expected for late 2018. The acquisition was completed in the second quarter of 2019. In November 2019, BOC entered into a $166,000,000 USD condominium inventory loan agreement with the borrower for the 565 Broome SoHo Refinancing Project. The proceeds were used to refinance the construction loan from BOC. AKS Capital Partners arranged the loan for the borrower. Record ID#107441 captures the BOC loan. Notable people to purchase condos at the building include Serbian professional tennis player Novak Djokovic, Uber co-founder Travis Kalanick, and Mary Trump, niece of U.S. President Donald Trump.