Manhattan's Westside Getting New $520 Million Mixed-Use Residential Development

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This week Manhattan-based Gotham Organization commenced construction on its new $520 million residential development encompassing nearly an entire city block in Manhattan.  Spanning West 44th to West 45th Streets from 10th to 11th Avenues, this rental development will include over 1,200 residential units distributed among four buildings. When completed, the development will transform a block condemned for redevelopment in the 1970s into a vibrant residential community.

"Through an innovative partnership with the City of New York, Gotham Organization is proud to take the lead on a development that will change the face of Midtown West," said Gotham Organization's president, David L. Picket. "This bold investment in our City's future will create hundreds of new jobs, generate millions of dollars in revenue for the construction industry, contribute towards the building of a new primary school, and provide homes to thousands of New Yorkers."

The development's centerpiece will be a 31-story tower located on the corner of 45th Street and 11th Avenue which will include approximately 550 luxury apartments. The low-rise properties surrounding the new development will allow wide open, unobstructed views from most units.  The property will incorporate extraordinary amenity spaces, including a sky terrace, 10,000 square feet of indoor recreational space, a 10,000 square foot interior courtyard, on-site parking, and bicycle storage that will embrace a bike advocacy program.

Through a partnership with City of New York, the development will provide 682 income-restricted housing units, predominately within the three mid-rise buildings along 44th and 45th Streets.  In a city where housing costs often exceed household budgets, Gotham is one of a few residential developers to bring to market homes specifically eligible to middle income households with annual incomes from $66,000 to $135,000.  Additionally, there will be an affordable housing component for households with annual earnings of up to $40,000.

A new state-of-the-art public elementary school with the capacity for 630 students will be built adjacent to the new development.  Gotham will also renovate the only remaining structure on the site - a now-vacant, historic 1904 school building - into residential condominium units that will be separately brought to market at a later date.

"We've always believed that the Far West Side of Manhattan has tremendous potential for providing what our growing city needs: more jobs for New Yorkers, and more affordable housing for them to live in," said Mayor Bloomberg. "In the near future, this development will provide homes for some 2,500 New Yorkers, but in the meantime it will grow our economy by creating 2,900 construction-related jobs."

A Gotham affiliate worked with the City of New York and the local community to change the zoning to allow for residential use. The residential development will be financed with primarily tax-exempt bonds issued by the New York State Housing Finance Agency. These bonds are credit enhanced by a syndicate of lenders led by Wells Fargo Bank.

"Wells Fargo stepped up to lead this financing early-on due to our commitment to the Mayor's New Housing Marketplace Plan and the development's solid fundamentals," said Alan Wiener, Group Head, Wells Fargo Multifamily Capital.  "We also like to back developers, like Gotham, who have strong track-records and the known ability to deliver on large scale developments."

The design by architect Schuman Lichtenstein Claman and Efron (SLCE) respects the scale of Clinton's streetscapes by organizing the buildings into segments, each with a distinct exterior.  The building's design will bring a new twist to the typical brick facades of the Clinton neighborhood through contemporary materials and details.

A Gotham affiliate, in connection with the nonprofit Housing Partnership, purchased the land from the City of New York, acting through the Department of Housing Preservation and Development (HPD).  As part of the deal's structure, Gotham will contribute $20 million to affordable housing needs elsewhere in Manhattan and $15 million to partially fund the new adjacent public school.

The residential units are slated for occupancy in 2014, and the new school is expected to open in the fall of 2013.  According to HPD, the project will create more than 2,900 construction and construction-related jobs over three years, and 34 full time permanent positions.

Established in 1931, Gotham Organization, Inc. is a fourth-generation family-run business that develops, builds, owns and operates real estate primarily in New York City. Gotham is active in both residential and retail development, most recently completing The Corner at 200 West 72nd Street. Gotham has also developed five 80/20 buildings in Manhattan, including three in Midtown West.

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