Ares Management & Douglaston Development Refinance 3ELEVEN in Hudosn Yards with $560M

Ares Management and Douglaston Development have successfully refinanced 3ELEVEN, a 60-story, 938-unit mixed-income apartment tower in Manhattan’s Hudson Yards. The new $560 million financing package comprises a $500 million single-asset CMBS loan from Goldman Sachs and Wells Fargo, complemented by $60 million in mezzanine debt.

Details of the Financing

The financing, detailed in a Kroll Bond Rating Agency report and covered by the Commercial Observer, involves floating-rate debt with a two-year initial term, three 12-month extension options, and monthly interest-only payments. Yardi Matrix noted the CMBS loan, co-funded by Goldman Sachs and Wells Fargo, is trading within the NYC Trust 2024-3ELEV pool.

Newmark's Jordan Roeschlaub, Nick Scribani, Jonathan Firestone, along with Drew Fletcher, Paul Fried, and Bryan Grover of Greystone Capital Advisors, facilitated the refinancing. This deal replaces a $415 million construction loan from June 2019, initially provided by HSBC, Bank of China, Landesbank Hessen-Thüringen, Santander Bank, and Raymond James Bank.

Overview of the Property

Located at 311 11th Ave. in the West Chelsea neighborhood, 3ELEVEN, previously known as 601 W. 29th St., was completed over a year ago and is now 99% leased. Construction of the $600 million project began in 2019, with leasing starting in August 2022. The building enjoys a 35-year tax abatement in exchange for reserving units for affordable housing under the discontinued 421-a program. The tower comprises 703 market-rate apartments and 235 affordable units, offering studio, one-, and two-bedroom floorplans. Market-rate rents range from $4,982 to $10,287, averaging $7,661.

Amenities and Features

3ELEVEN features about 15,000 square feet of retail space and 60,000 square feet of amenities, including lounges, co-working spaces with conference rooms, a fitness center with a yoga studio, a pool with cabanas, a roof deck, a children’s playroom, theater, music practice rooms, and multiple outdoor areas such as a 42nd-floor terrace and dedicated dog runs. The building also provides 80 parking spaces, including covered parking.

Apartment amenities include washers and dryers in all units, hardwood floors, high-speed internet access, and above-standard ceiling heights. Managed by Clinton Management, the property management affiliate of Douglaston Development, 3ELEVEN spans the west side of 11th Avenue from West 29th to West 30th Streets. Its prime location offers proximity to high-end shops, restaurants, the Hudson River, and the High Line elevated park.

Recent Developments by Douglaston

In addition to the refinancing, Douglaston Development has secured financing for the $190 million second phase of its mixed-use project next to the New York Botanical Garden in the Bronx. This phase includes a 12-story, 250,000-square-foot building at 2868 Webster Ave. in the Bedford Park neighborhood, providing 277 units of multifamily affordable housing. The project is part of a broader development that also features 188 units of senior housing at 2850 Webster Ave.