Related Lands $750M Wells Fargo Loan for Manhattan Plaza

Related Cos. has secured a $750 million refinancing for Manhattan Plaza, the Hell’s Kitchen housing complex long known as “Broadway’s Bedroom,” while locking in another two decades of federal rent protections.

Wells Fargo provided the mortgage for the 2-million-square-foot, 1,689-unit Section 8 property at 576 10th Ave., according to records filed in the city register. The new debt retires a $450 million Fannie Mae loan, PincusCo reported.

The financing arrived alongside a separate filing: an agreement with the U.S. Department of Housing and Urban Development that extends the building’s Section 8 status for 20 years. Under the arrangement, rents stay affordable for households earning no more than 80% of the area median income.

The HUD agreement carries additional commitments. Related will reserve funds for maintenance and undertake repairs. The deal also bars the landlord, which developed Hudson Yards and Deutsche Bank Center, from interfering with tenants’ ability to organize if they choose to do so.

Manhattan Plaza earned its nickname from its affordability, scale and proximity to the theater district. According to Related’s website, 70% of units are reserved for performing artists under the Section 8 program. Related and Wells Fargo did not immediately respond to requests for comment.

The Manhattan Plaza deal headlined a busy week of New York financing activity.

In SoHo, Acore Capital provided a $216 million bridge loan to Aurora Capital, Allied Partners and A&H Acquisitions to refinance 568 Broadway, according to a release. The 12-story, 391,000-square-foot mixed-use building includes 71,000 square feet of retail space that is fully leased to Hugo Boss, Athletic Propulsion Labs, GU and Equinox. Office tenants include Zocdoc and The Farmer’s Dog. A Walker & Dunlop team arranged the debt.

In Queens, Sitex Group and a diversified global investment firm landed a $50.2 million loan from Lake Forest Bank & Trust Co. for two industrial facilities in Maspeth totaling 183,000 square feet. The financing was split into a $39.4 million loan for 58-80 Borden Ave. and a $10.8 million loan for 54-12 48th St., with JLL Capital Markets arranging the deal.

In Midtown, Rose Associates and joint venture partner Morgan Stanley Real Estate Investing recapitalized the 29-story Ellington, a 1987 multifamily building at 260 W. 52nd St., with $103 million from AXA Equitable, Commercial Observer reported. In Park Slope, Affinius Capital provided a $143.4 million construction loan to Goose Property Management for a four-building project on the former Arrow Linen site. Goose acquired the property for $55 million in late September and plans 396 apartments across 10-story towers, PincusCo reported.

The leasing market also produced notable moves. Databricks signed a 120,000-square-foot lease at Savanna’s 5 Bryant Park, doubling its space across five floors, the New York Post reported. Garnett Station Partners took 35,000 square feet at SL Green’s 450 Park Ave. on an 11.5-year lease, Commercial Observer reported.

Finally, the full price of Tishman Speyer’s Chrysler Building ground lease deal has come to light. The firm agreed to pay Cooper Union $351 million on a 150-year lease expiring in September 2176, PincusCo reported. The parties had earlier disclosed only $235 million plus future ground lease payments.