JLL Capital Markets announced that it has completed the $151.4 million capitalization of 335 8th Avenue, a to-be-built, seven-story, 188-unit, mixed-use building located on the northwest corner of Eighth Avenue and 26th Street in the Chelsea neighborhood of Manhattan.
MAG Partners was selected earlier this year through an RFP process by the site’s landowner and affordable housing cooperative, Penn South, to develop a state-of-the-art mixed-use development in the heart of Chelsea, Manhattan.
JLL represented the borrower, a joint venture of MAG Partners and Safanad, to secure construction financing from Bank OZK and additional financing led by MetLife Investment Management.
Designed by renowned local architect COOKFOX to meet demand from renters seeking a vibrant 24-hour community environment within a full-service building, 335 8th Ave. will feature primarily studio and one-bedroom units (90%) with the remainder as two-bedrooms. Sponsorship installed foundations for the development and secured a 421a tax abatement enabling 30% of the apartments to be reserved for low- and middle-income residents.
The JLL debt advisory team representing the sponsor was led by Managing Director Geoff Goldstein and Senior Directors Jillian Mariutti and Stephen Van Leer. The equity team comprised Senior Managing Directors Rob Hinckley and Jeffrey Julien and Director Nicco Lupo.
“The project’s best-in-class sponsors have a proven track record delivering market-leading properties that offer outstanding investment characteristics. In an otherwise dislocated market, we are thrilled to complete another successful capitalization with leading players committed to developing outstanding projects,” said Hinckley.
“In a market with a 2.1% vacancy rate, 335 8th Avenue’s curated unit mix and high-level amenity package will meet demand from renters seeking to live in a desirable luxury multi-housing development in the highly sought-after neighborhood of Chelsea,” added Mariutti.
Set for completion in Q3 2025, 335 8th Ave. will support sustainable and healthy living. The developer is pursuing both LEED Gold Certification by the U.S. Green Building Council (USGBC) and Passive House certification by the Passive House Institute U.S. (PHIUS), providing cutting-edge sustainability practices embedded throughout.
MAG Partners is woman-owned, urban real estate company with decades of experience developing impactful, iconic, large-scale projects throughout New York City. The MAG Partners team has developed 3,520 housing units, as well as 14.7 million square feet of developed office, residential and mixed-use assets since inception.
Founded in 2009, Safanad is a global holding company combining investment and operational excellence. We develop deep conviction behind investment sectors that have strong macroeconomic tailwinds, build powerful operating platforms to capitalize on these opportunities, and realize the greatest value from this expertise through organic growth and acquisitions over time. Safanad invests in impact, with platforms in Education, Healthcare, Digital Infrastructure, and Real Estate. From offices in New York, London, Riyadh, and Dubai, the firm’s c. 40 professionals have completed more than 40 transactions totaling $10 billion.
