McCarthy of Morrison & Foerster advises on $229 million financing for 850-unit Manhattan residential complex

Law firm Morrison & Foerster LLP represented Wells Fargo and JPMorgan Chase in two construction loans totaling $229 million for the financing of a large apartment complex under development on the Far West Side. The financing will be used by Two Trees Management for the second phase of construction of an 850-unit residential building at 53rd St. and 11th Ave.. The transaction team at Morrison & Foerster was led by partner John McCarthy. The Two Tree's development, named Mercedes House for the car showroom and service center occupying the building's lower floors, is half complete with the first phase of construction finished earlier this year. The building features cascading green roof terraces that zig-zag from the lower to upper floors. The $229 million in financing consists of a $145 million construction loan stemming from proceeds of bonds issued by the New York State Housing Finance Agency. The bonds were credit enhanced with a letter of credit issued by Wells Fargo and backed 50% by JPMorgan Chase. The proceeds from that loan will finance around 480 units with nearly 100 of those being offered to low-income households. The second part of the financing is an $84 million construction loan shared equally by Wells Fargo and JPMorgan Chase with JPMorgan serving as administrative agent for the two lenders. The second loan will finance 162 residential condominium units. "The distinctive design of Mercedes House by renowned architect Enrique Norten makes this building instantly recognizable and a sought after address. It's location and amenities are sure to make Mercedes House a stand-out building among the burgeoning west side of Manhattan," said McCarthy. The Mercedes House financing represents the latest marquee project for Morrison & Foerster's real estate group. Since the beginning of November, the firm has closed on several billion dollars in financings - including representing Bank of America as lead lender in a $700 million construction loan to Extell Development's One57 in midtown Manhattan, the largest single property construction financing in the U.S. in 2011. The firm also represented CIBC Inc. as co-lender in a $280 million refinancing of existing mortgage and mezzanine debt on 180 Maiden Lane, an office building in lower Manhattan. In the past month, the firm also advised on financing transactions for the Sofitel Hotel and Minskoff Organization's new 51 Astor Place office complex. In addition, Morrison & Foerster recently announced that it represented the Dubai Group on transitioning its $1.1 billion U.S. and German real estate portfolio to a private real estate investment manager, as well as representing a well-known Irish bank in the sale of its $1.2 billion US loan portfolio. "We are truly ending the year on a high note with the financing of Mercedes House, another major project that is changing the face and dynamics of the New York real estate scene. We are especially happy to have worked with so many preeminent lending institutions in financing the best projects in New York and nationally," said Mark Edelstein, who chairs the firm's Real Estate Finance Group in New York. Morrison & Foerster is a global firm with over 1,000 lawyers in key technology and financial centers in the U.S., Europe and Asia. Our attorneys share high standards and a commitment to excellence. Our dedication to serving client needs has resulted in enduring relationships and a record of high achievement. * Ranked as a top-tier law firm in real estate by U.S. News - Best Lawyers® Best Law Firms 2010 and by Chambers USA 2011 and Chambers Asia 2011 * Top ranked by Legal 500 US 2011, Legal 500 Asia-Pacific 2010-2011