A residential high-rise in Manhattan's Financial District is nearing completion with fresh financing. Grubb Properties has closed on $377 million in construction financing for its 64-storey project at 8 Carlisle Street, Commercial Observer has learned. The property will be known as Link Apartments, in line with Grubb's national multifamily brand, and follows the development of Link Apartments QPN in Queens' Long Island City, which was completed last year.
Maxim Capital Group provided the $300 million senior construction loan. A junior mezzanine construction loan of $77 million was jointly provided by GreenBarn Investment Group, Skylight Real Estate Partners, Axonic Capital, and Meadow Partners. This financing will facilitate the completion and initial lease-up of the building, which has been under construction for over a year and is expected to top out in the coming weeks. The project's total capitalisation amounts to approximately $500 million, according to sources close to the project.
Maxim Capital is well acquainted with 8 Carlisle Street, as its lending relationship with the property dates back to May 2024. At that time, the firm provided a $67.5 million loan for the site, which was recently increased to $193 million. Now, the company has returned with one of its largest construction loans. Josh Greene, Managing Director and Partner at Maxim Capital, stated that this was a very large loan and one they were very proud of. He added that providing larger loans like for 8 Carlisle is part of the company's natural evolution. They have grown significantly, and this growth has enabled them to undertake transactions of this magnitude.
The lending opportunity for 8 Carlisle Street also meets several of Maxim's criteria. Approximately 70 percent of every dollar deployed by Maxim today goes to repeat sponsors like Grubb Properties. Furthermore, the property is located in a primary market with a residential component. Greene further explained that Grubb Properties is a repeat sponsor, and they provided a very similar loan for them in Long Island City, where they supplied an early-stage construction loan, increased it, and then paved the way for the comprehensive construction loan. The LIC project went very well for Grubb, and they wanted to do more work with them. 8 Carlisle represents an exciting opportunity.
There is also great familiarity within the mezzanine consortium. GreenBarn, Skylight, and Axonic already had a relationship with Grubb Properties after providing the firm with a $55 million fund-level net asset value (NAV) loan in November 2024, according to sources. This NAV loan was secured by a portfolio of 27 Grubb properties, including 8 Carlisle. Although it was recently repaid in a separate transaction, the NAV loan allowed the firms to gain early insight into 8 Carlisle before negotiating and closing the mezzanine loan on 2 July in recent months.
Morris Betesh of Arrow Real Estate Advisors negotiated the financing, having also arranged Maxim's original loan for 8 Carlisle and the construction financing for Link Apartments QPN. Betesh commented that they had been working on this transaction for two years. It was very complex to coordinate the capital sources and bring the project to fruition, but it is a great building with a persistent, experienced developer who was able to realise the development despite market headwinds. There is a lot of residential supply in the Financial District, but much of it is conversion product, and this is truly differentiated, which is very gratifying.
Standing at 789 feet, 8 Carlisle Street is one of the tallest buildings in the Financial District and features a 70/30 421-a structure, making it one of the very last 421-a projects to be realised. Upon completion, 8 Carlisle Street will comprise seven to ten residential units per floor, according to New York YIMBY. The new building is designed to meet the needs of Manhattan's rent-dependent Millennials and Gen Z workforce, with amenities such as a swimming pool, a fitness centre with an outdoor terrace, entertainment rooms, and a lounge on the 63rd floor. It will also include 7,000 square feet of retail space. Previously, according to New York YIMBY, the site housed a car park, after which the site lay vacant for 16 years until Grubb began work on 8 Carlisle Street.
