Safanad and MAG Partners execute strategic partnership agreement and conclude first investment in prime NYC multifamily development
November 16, 2020 – Safanad, the global principal investment firm, today announced an exciting partnership agreement with MAG Partners, a leading New York based real estate development company founded by MaryAnne Gillmartin, the preeminent New York developer, who is also the current interim CEO of Mack Cali (NYSE: CLI) and former CEO of Forest City New York, the New York subsidiary of publicly traded Forest City Enterprises.
The collaboration is expected to grant Safanad with unparalleled access to strategic, off-market development opportunities in the New York, New Jersey, and Connecticut metropolitan areas. Under the exclusive agreement, Safanad will have a first-look option to co-invest in all potential projects MAG Partners pursues in those geographies for up to 24 months.
As part of the collaboration, Safanad has also concluded its first investment alongside MAG Partners and other strategic investors to develop a 480-unit multifamily building at 241 West 28th Street (“28th Street”) located near the heart of New York City’s Chelsea and Hudson Yards submarkets.
The project has been designed by COOKFOX Architects, a highly regarded architecture firm known for its work relating to sustainability and occupant wellness. The site will comprise two 22-story towers, individually fronting West 28th and West 29th streets, and a private courtyard in between. There will be retail space on the ground floor, apartments on all floors above, and amenities for the residents including lounges, fitness areas, a children’s playroom, and a top-floor lounge, swimming pool, and terrace. The project will also benefit from a 35-year tax abatement under the Affordable New York program as 30% of its units will be designated for low- and middle-income New Yorkers. Construction is set to commence in November 2020.
Commenting, Andrew Trickett, Head of Investments at Safanad, said, “We are excited to have the opportunity to be a part of this 28th Street partnership group, led by one of New York’s most respected developers, MaryAnne Gilmartin. With our entry in this transaction, we are now poised to deliver a market leading asset in an irreplaceable location, in a city that we believe will come back stronger than ever in the coming years. We hope this transaction will be the first of several development projects with MAG Partners.”
The 28th Street project will provide much needed market-rate and affordable rental apartments to a central Manhattan location within walking distance to thousands of office tenants in Hudson Yards, Midtown, Chelsea, Flatiron, and the Meatpacking District. The area has been witnessing a technology-sector boom with industry giants including Facebook, Apple, Google, and Amazon all forging ahead with ambitious expansions nearby, even during the pandemic. With this influx of large-scale tech tenants, we anticipate an even further increase in the education and income levels of employees interested in living near their place of work.
MaryAnne Gilmartin added, “This is an incredibly desirable location as major tech companies continue to sign big leases within walking distance, and we expect to see very strong long-term demand for this property when it opens.”
This investment is the first multifamily project in New York City for Safanad as well as the first of several successful development projects it hopes to undertake with MAG Partners in order to take advantage of the strong underlying fundamentals of the New York market.