Here's one for the record books: The largest single-asset bond transaction in the history of New York City's Housing Development Corporation has been closed. Manhattan-based commercial property lender American Property Financing (APF) today announced the successful closing of the $217 million bond credit transaction for apartment building Two Gold Street. The property is located in lower Manhattan's Financial District.
The 51-story Two Gold Street property has 650 units plus a 98-car indoor parking garage. The property also boasts 9,100 sq. ft. of retail space.
APF has replaced the short-term construction letter of credit with a long-term Fannie Mae credit enhancement facility of $217 million. That facility is comprised of $162 million in New York City HDC tax-exempt Liberty Bonds, plus $55 million in taxable bonds. APF’s client borrower is an affiliate of Manhattan-based Rockrose Development Corp.
The Liberty Bond program is a low-cost, tax-exempt bond-financing program created by the City and State of New York after the 9/11 terrorist attacks. The purpose of the initiative was to promote the rebuilding efforts in lower Manhattan and return vitality to the neighborhood, which was present before the 9/11 attacks on the Twin Towers.