Strategic Capital today announced a $140 million equity investment in a development located in the Hudson Square neighborhood of Manhattan. Strategic’s investment consists of both equity and mezzanine components invested in a joint venture with Cape Advisors and Forum Absolute Capital Partners (FACP). Strategic Capital will co-develop the property with Cape Advisors. With a national portfolio in excess of $1 billion, this deal signifies Strategic Capital’s first foray into the residential market in Manhattan. Strategic Capital is the investment arm of China Construction America (CCA), which is the American subsidiary of China State Construction and Engineering Company (CSCEC), a Fortune Global 500 giant and one of the largest investment and construction companies in the world.
The site is located at 110 Charlton Street and 537 Greenwich Street and when complete will be a 280,000-square-foot tower with 170 residential units, ground floor retail and parking. The site, located at the confluence of SoHo, the West Village and Tribeca, has unobstructed views of the Hudson River. The partnership has tapped Parisian-based Loci Anima and Adamson Associates for the luxury loft design. The project is being built by Plaza Construction, an affiliate of Strategic Capital, which expects to commence construction in early June. Sales for the condominiums are slated for Spring 2018.
“CCA is pleased to be involved in this joint venture through our subsidiaries, Strategic Capital and Plaza Construction. We look forward to continuing their successful track records with this important Manhattan project,” said Ning Yuan, CEO of CCA, who also notes that CCA’s experience as an international investor, developer and builder will provide a strong foundation for this new project.
"We look forward to having the opportunity to partner with both Strategic Capital and Forum Absolute Capital Partners in the development at this unprecedented West SoHo site that has been a major focus of Cape’s for over two years,” said Craig Wood, Co-Founder and Co-Managing Partner at Cape Advisors.
"This investment demonstrates our in-house ability to identify, finance and develop large scale real estate assets. The combination of outstanding location, unobstructed views and distinctive architecture make this a unique condominium project,” said Linsen Zhang, President of Strategic Capital.
“We’re very excited the Hudson Square project will soon be underway. Partnering with Strategic Capital and Cape Advisors will provide an excellent source of knowledge and expertise as both firms possess impressive portfolios,” said Mikhail Kurnev, Managing Partner at Forum Absolute Capital Partners.
Eastdil Secured brokered the joint venture between Strategic Capital and Cape Advisors. Shearman & Sterling represented Strategic in the transaction while Haynes and Boone represented Forum Absolute Capital Partners and Cape Advisors.
Strategic Capital is a global investment and development company based in the Greater New York area. The firm has a strong development capability, with an integrated team of engineering, construction, architecture, design, finance and business professionals. Strategic Capital owns, develops, manages and finances high-quality assets in the most resilient and dynamic gateway cities. The firm is owned by CSCEC, one of the world’s largest investment and construction companies, through its US subsidiary CCA, which was founded in New York in 1985.
Founded in 1995, Cape Advisors boasts an extensive real estate development and investment portfolio and has completed over $1.5 billion in projects primarily located in New York City and New Jersey. Notable residential projects include 100 11th Avenue, 30 Warren Street and One Kenmare Square in Manhattan and the Watchcase Condominiums in Sag Harbour.
Forum Absolute Capital Partners is a private equity firm that was founded in 2012. FACP has been active in the New York metro area and is currently involved in a handful of residential developments in Manhattan.
Plaza Construction is one of the nation’s leading construction management and general contracting companies. Since its incorporation in 1986, the firm has grown from a regional organization to a multi-faceted, national presence in the industry with headquarters in New York and regional offices in Miami, Washington DC and Los Angeles.
