Cove Property Group Obtains $479M in Construction Financing for 25-Story Office Tower in Manhattan

by Nellie Day

NEW YORK CITY — Cove Property Group and an institutional partner have received $479 million in construction financing for Hudson Commons, a 701,364-square-foot trophy office building in the Hudson Yards/Penn Plaza submarket of Manhattan. The 25-story building is located at 441 Ninth Ave. between 34th and 35th streets.

Hudson Commons will comprise a 17-story structure atop an existing eight-story building. The development will feature 14 private terraces and balconies and onsite basement parking for up to 140 vehicles. The design will incorporate varied floor plans with high ceilings, as well as sustainable elements, such as terraces and green roofs. Kohn Pedersen Fox is designing Hudson Commons.

The new building will be equidistant between Penn Station and the new 7 Train extension that services Hudson Yards. It will also feature access to the Port Authority and Lincoln Tunnel.

Cove Property Group purchased the asset in December 2016 for $330 million. EmblemHealth had owned the existing 423,000-square-foot building since 1994. The structure was originally built as a warehouse in 1962 before it was converted to office space in 1983.

Loan proceeds will reposition and redevelop the asset into a Class A office tower with full-block frontage along Ninth Avenue. The project is slated for completion in summer 2019, with tenants moving in during the last quarter of 2018.

HFF’s Michael Gigliotti, Geoff Goldstein and Michael Tepedino secured the construction financing. Investment funds managed by affiliates of Apollo Global Management, including Apollo Commercial Real Estate Finance, provided the capital.

Cove Property Group is a New York City-based joint venture between Kevin Hoo, Thomas Farrell, Amit Patel and Blue Sky Alternative Investments. The firm focuses on real estate investment, development and ownership.

— Nellie Day

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