The Moinian Group and SL Green Realty refinanced their Far West Side luxury rental tower Sky with a $550 million loan from Freddie Mac. The deal marks the government-backed firm’s largest-ever tax-exempt financing of a single building.
Sky is a luxury rental tower – studios there ask north of $3,000 per month, it boasts amenities such as a full-length indoor basketball court and three swimming pools, and it’s reportedly home to New York Knicks star Kristaps Porzingis. The 71-story, 1,175-unit tower is one of New York’s largest rental buildings.
SL Green was initially a mezzanine lender on the project, and bought a 20-percent stake in the property last year.
Freddie Mac, like its sister company Fannie Mae, stamps real estate loans with a repayment guarantee and sells them off as bonds. The bulk of its business is in single-family mortgages, but it also securitizes some multifamily loans, including tax-exempt bonds. According to Greystone, the Sky financing is the first deal in which Freddie Mac bought tax-exempt bonds in a private placement before securitizing them. Greystone’s Fletcher called the deal a “landmark financing,” adding that the switch from 421a to Affordable New York, which increased the building’s below-market component from 20 to 25 percent, increased the appeal for Freddie Mac.