Square Mile Capital and Pacific Western Bank are set to provide $183 million in construction financing for a 12-story mixed-use property at 258-278 Eighth Avenue in Chelsea, Manhattan. A new Target retail store will occupy 28,000 square feet of the building’s lower levels. Above these floors, the development will house 190 rental apartments and associated amenities.
Public records list Chelsea 23rd Realty, an LLC affiliated with JJ Operating, as the most recent property owner, which acquired the lot in August 2017. Alchemy-ABR Investment Partners, co-developer of the project, arranged the project financing.
“We are bullish on the long-term demand prospects for high quality, transit-oriented multifamily product in New York City, and believe there will be substantial demand upon delivery in 2023,” said Square Mile Capital vice president Eric Juster.
Residential amenity spaces will include a roof-level terrace, an additional terrace on the second floor, a fitness center, a communal lounge, a speakeasy, and a bike room.
“We are proud to announce the closing of this transaction, which highlights the continued faith in the recovery of New York City,” said Kenneth Horn, co-founder and partner of Alchemy-ABR Investment Partners, and Joel Breitkopf, co-founder and partner of Alchemy-ABR Investment Partners in a joint statement, “We are confident in our investment and optimistic about the strong demand for a high-quality rental offering in Chelsea, one of Manhattan’s most dynamic neighborhoods.”
The development site spans 40,000 square feet and extends from West 23rd Street to West 24th Street. Current occupants include a CVS Pharmacy, The Gap, and a New York Sports Club. Demolition permits for the existing building were filed with the New York City Department of Buildings in April 2021.
Construction on the new property is expected to kick off in the beginning of 2022.