Arrow Real Estate Advisors closes $377 million financing for Grubb Properties' 8 Carlisle St. multifamily tower

Manhattan, NY Arrow Real Estate Advisors arranged $377 million in construction financing on behalf of Grubb Properties for the development of 8 Carlisle Street, a 64-story, 462-unit Class A multifamily tower in the Financial District.

The financing was arranged by Arrow’s Morris Betesh, Omar Ferreira, Brandon Serota, and Jacob Petrovic. The capital stack includes a $300 million senior construction loan from Maxim Capital Group and a $77 million mezzanine financing package provided by Skylight Real Estate Partners.

Located two blocks south of theWorld Trade Center, the 789-ft. tower will be among the tallest residential buildings in Lower Manhattan upon completion. Designed by Handel Architects and constructed by Consigli Construction, the project encompasses approximately 444,413 gross s/f and will deliver 462 rental apartments along with 7,000 s/f of ground-floor retail space.

The residential program is being developed under the 421a Affordable New York Housing Program, with approximately 30% of the apartments designated as affordable housing for house holds earning between 70% and 130% of Area Median Income. The remaining units will be offered at market-rate rents.

“The Grubb team have one of the best rental platforms in the country, and 8 Carlisle will be their biggest community to date with 462 units spanning 64 stories,” said Morris Betesh, principal of Arrow Real Estate Advisors. “The bulk of FiDi’s new supply is coming through office-to-residential conversion, so ground-up development at this scale and quality really differentiates the asset within the submarket.  Maxim has been a true partner of ours for years, and writing a senior loan of this size on a project of this caliber speaks to their conviction in Grubb and the asset. With Skylight providing the mezzanine financing, the collection of institutional capital and multi-tiered capital stack speaks to Arrow’s creativity, tenacity, and the strength of the project and sponsorship.”

The financing represents a significant milestone for both Grubb Properties and the Financial District residential market. Upon completion, the property will operate under Grubb’s nationally recognized Link Apartments brand and will become the largest Link Apartments community in the United States.

Construction is currently past the halfway mark, with the reinforced concrete superstructure continuing to rise and topping out anticipated later this summer. The curtain wall installation is actively progressing, positioning the development for delivery as one of the largest residential towers currently under construction in Lower Manhattan.

The property’s location offers residents immediate access to the World Trade Center transportation hub and multiple subway lines, including the 1, R, W, 4, and 5 trains, providing connectivity throughout New York City.