Essex Crossing Complex on LES Gets $466M in New Financing

By: Benyamin Davidsons

The team behind Essex Crossing has a lot to brag about.

As reported by the NY Post, developers Delancey Street Associates have succeeded in securing $466 million in refinancing for four buildings in the $1.6 billion, 2 million square-foot complex in Manhattan’s Lower East Side. The under-construction mixed-use development is being handled by a team comprised of Taconic Partners, L+M Development Partners, the Prusik Group and Goldman Sachs’ Urban Investment Group.

The largest of the loans is for $285 million from Deutsche Bank, and it is slated to replace the construction loans at office buildings 145 and 155 Delancey streets. The other loans are for the touted residential buildings being built.  A $144 million loan was secured for The Artisan, and $37.1 million for One Essex Crossing from Square Mile Capital.  Charles Bendit, co-CEO of Taconic Partners, said the Deutsche Bank loan provides the capital to finish the leasing program for the remaining office space and also for some space in the Market Line, which is the name for the underground food and retail section of the mega-project.

The office towers on Delancey Street boast 350,000 square feet of space.  Verizon Communications Inc announced, in November 2021, that it would take on about 175,000 square feet of the space at 155 Delancey in a 20-year lease.  As one of the world’s largest communications technology companies, Verizon will be the anchor office tenant, with plans to move hundreds of employees into the Class A office building. Its marketing group will be moved into the 3rd to 5th floors, and out of its current space at 140 West St.

The two office buildings in the complex also boast tenants including Trader Joe’s, the International Center of Photography and a 14-screen Regal Cinemas.  “Essex Crossing represents the future of work, and Verizon took notice,” said Charles Bendit, co-founder and co-CEO of Taconic Partners, the partner leading the commercial development, leasing and management of the offices.  “Tenants will enjoy an amenity-rich campus environment, with every need just steps away. Over one hundred food options, convenient transportation, private outdoor space and more. This lease is a jolt of confidence in New York City’s return to office and demonstrates that employers are still committed to providing employees with a superior, highly curated workplace experience.”  The office spaces at the complex boast private outdoor terraces, open green space, tenant-controlled HVAC systems, in-office bike storage, as well as showers and lockers.

The architecturally praised complex, located near the foot of the Williamsburg Bridge, will take up a total of nine city blocks.  The project also includes two residential buildings—the 14-story One Essex Crossing and The Artisan with 26-stories.  They will offer a total of over 1,000 housing units—including more than 500 permanently affordable housing units for low, moderate, and middle-income households, as well as seniors.  Apartments boast architecture and interiors by CetraRuddy.  The mega-project’s final completion has been set for 2024.