- Walker & Dunlop arranged a $203.5M floating-rate construction loan for SK Development and Kinsmen Property Group’s 50 Third Avenue project in Manhattan’s East Village.
- The mixed-use development spans two 17-story buildings with 184 units, 37 of them reserved for households earning 80% of area median income or less.
- East Village vacancy averaged about 2% as of June with asking rents near $5,440, according to Walker & Dunlop, pointing to a supply-constrained submarket.
SK Development and Kinsmen Property Group have secured a $203.5M construction loan for an East Village multifamily project in Manhattan, according to GlobeSt.
Walker & Dunlop placed the floating-rate debt on the 50 Third Avenue site.
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Two Towers, 184 Units
The mixed-use project covers two 17-story buildings holding 184 apartments. Thirty-seven will serve households at or below 80% of area median income, and the rest will rent at market rates.
The street level is planned for restaurants and service-oriented retail.
A Supply-Starved Submarket
Walker & Dunlop’s Aaron Appel cites limited housing supply and steady renter demand as the case for mixed-income housing here. The firm puts East Village vacancy near 2% as of June, with asking rents averaging about $5,440.
Appel expects the finished building to attract younger, higher-earning renters. The amenity package runs from a golf simulator, cold plunge and sauna to coworking space, a yoga studio, a lounge, terraces and a gym.
Why It Matters
Lenders are still funding New York construction where vacancy is tight, even with borrowing costs elevated. The income-restricted share also touches the city’s push for affordable housing.
SK Development principal Scott Shnay called the project a marquee luxury building in a submarket that keeps drawing institutional capital.
What’s Next
Floating-rate debt ties the project to short-term rate moves during construction. Lease-up will test whether the amenity-heavy product can hold pricing near the submarket’s current levels, as apartment demand nationally approaches supply.
