Related secures $750 million loan to refinance Manhattan Plaza and extends Section 8
Related Companies just refinanced Manhattan Plaza with a $750 million loan.
The short version
- Wells Fargo, the major bank, provided the money for the huge property.
- The deal also locks in Section 8 housing for another 20 years.
- Rents will stay affordable for local artists and musicians living there.
Related Companies, the massive real estate developer, just locked down a massive $750 million loan from Wells Fargo, the major bank, to refinance Manhattan Plaza at 576 10th Avenue in New York City. The huge refinancing package retires an older $450 million loan from Fannie Mae, the government-backed mortgage buyer.
Even better for the tenants, Related Companies extended the famous artists' building's Section 8 housing agreement for another 20 years. That means rents at the 2-million-square-foot, 1,689-unit property will stay affordable for artists earning no more than 80 percent of the area median income.
The sprawling complex on 10th Avenue has housed generations of prominent figures, including Alicia Keys, Timothee Chalamet and Larry David. As part of the deal, Related Companies will also reserve dedicated funds for building maintenance and repairs. The developer's agreement with the Department of Housing and Urban Development, the federal agency backing affordable housing, also stops it from interfering in any tenant organization.
For renters in the city watching financing costs climb, this 20-year extension keeps thousands of subsidized doors wide open.
