A joint venture between developers SK Development and Kinsmen Property Group landed the floating-rate, interest-only $203.5M construction loan from Ironsand for the 50 Third Ave. development. The developers are planning to build two properties on separate tax lots but combine them as a single structure with a shared lobby, Commercial Observer reported.
The developers also filed an application for an air rights transfer from St. Mark’s Church in-the-Bowery last week, according to Commercial Observer. If the Landmarks Preservation Commission doesn't sign off on the air rights transfer, the JV plans to build a single, market-rate building with 14 apartments. If it goes through — which the developers need it to do to use the 485-x tax incentive, according to Commercial Observer — then the deal would give them an extra 27K SF of air rights to play with.
The submarket has a vacancy rate of 2%, according to a Citi Real Estate Funding July term sheet detailing some of the loans that Citi has made in the area, a little above the citywide average of 1.4%.
Kinsmen has been slowly building the assemblage on the site, closing its deal for the sixth building on the block in 2024 for $10M, PincusCo reported at the time. Proceeds from the air rights transfer would generate cash for the church to carry out preservation, maintenance and restoration on the property, according to PincusCo.