Hunton & Williams Represents World-Wide in $450M Construction Loan

Hunton & Williams represented The World-Wide Group which recently closed on a $450 million construction loan from Starwood Property Trust Inc. in order for The World-Wide Group to build a 65-story residential tower at 252 East 57th Street in New York City, which will contain 93 luxury condominium residences and 173 rental apartments and 33,000 square feet of retail space. Read more in World Wide Group’s press release on the matter below.

$450 MILLION LOAN SECURED FOR WORLD-WIDE GROUP/ROSE ASSOCIATES RESIDENTIAL TOWER AT 252 EAST 57TH STREET

NEW YORK, NY- February 20, 2014 – New York-based real estate development firms, The World-Wide Group and Rose Associates, announce the closing of a $450 million construction loan by Starwood Property Trust, Inc. The loan marks what is believed to be the largest residential construction loan of 2014 for the highly anticipated residential tower at 252 East 57th Street.

“We are extremely pleased to be moving ahead with this world-class development,” said James Stanton, President of The World-Wide Group. “Starwood provided us a single financing partner for this mega loan, which greatly simplified our going from commitment to closing.”

“This loan reflects the confidence Starwood has in this exceptional development and its commitment to architecturally distinctive developments in New York City,” said Boyd Fellows, President of Starwood Property Trust. “We are proud to have delivered a successful financial solution for this gold medal project.”

Anchoring the 57th Street corridor, the 65-story tower will rise approximately 700 feet and offer 93 one-of-a-kind condominium residences.

According to Stribling Marketing Associates, which is handling sales and marketing for the development, construction is already underway with sales slated to launch in the second quarter of 2014.

“With the recent success of developments along 57th Street, market conditions are primed for the introduction of 252 East 57th Street,” said Elizabeth Stribling, Chairman and Founder of Stribling Marketing Associates. “This project will deliver a superior level of design and reflects Stribling’s longstanding commitment to the highest quality developments within Manhattan.”

The loan also covers the 173 unit residential rental component, as well as the retail portion, including the soon-to-be developed 33,000 square feet of space within 252 East 57th Street and the 39,000-square-foot Whole Foods store, which opened in 2012.

Laurie Grasso and Carl Schwartz of Hunton & Williams LLP represented the borrower, while Robert Golub of Sidley Austin LLP represented the lender. Andrew J. Singer of The Singer & Bassuk Organization LLC served as the advisor to the borrower.

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About The World-Wide Group

The World-Wide Group is a privately-held real estate investment company, based in New York City. Throughout its 65 year history, World-Wide has developed over $3 billion worth of new luxury properties in Manhattan, including ground-up luxury towers most recently 255 East 74th Street and 300 East 55th Street; and conversions of underutilized commercial buildings into premium residential properties including 50 Murray Street, 53 Park Place, and The Steiner Building in Chelsea. Currently World-Wide is constructing a 400,000-square-foot residential tower at 41-42 24th Street in Long Island City.

About Rose Associates

Based in New York, Rose Associates is a developer, owner and operator of premium residential properties. From planning a new development to managing day-to-day property operations, the Rose 360 Platform offers a full range of services designed to maximize the value of real estate. The firm oversees more than 26,000 units across New York, with approximately $2 billion in projects under development. Rose is currently transforming the historic skyscraper at 70 Pine Street into a luxury rental property with 644 residential units and 132 extend-stay apartments.