The Magellan
35 W 33rd Street New York, New York
http://www.themagellan.com
Year Completed: 2003
Building Area: 113,224 sf
Pitcairn captured the attention of the New York City real estate market with the development of the Magellan, our premier, multi-family residential asset. By assembling a project team consisting of the city\'s top real estate professionals we were able to move through the design and approval process in an astonishingly short nine-month period, as well as increase the number of approved units from 113 to 168. Additionally, through extensive value engineering and subcontractor negotiations, we were able to reduce development costs by more than $3 million.
Pitcairn broke ground on the Magellan on June 3, 2002. The 168-unit high-rise apartment building is located in the heart of Manhattan, just off Fifth Avenue and a block from famed Herald Square. This location is ideal for residents who wish to walk to work in Midtown, and provides easy access to virtually every subway line in the city, as well as two major regional railway hubs. The name \"Magellan\" is meant to evoke the spirit of discovery afforded by this residential location and is further supported by our marketing tagline, \"Discover the Best of New York.\"
This project was structured so that it would receive a 22-year abatement of real estate taxes, 10 years of direct tax credits, an exemption from New York City\'s 2.75% mortgage recording tax, and low interest mortgage financing via bonds issued by the New York State Housing Finance Agency. To receive these benefits, we provide 20% of the units to moderate income residents. This financial structuring has significantly enhanced net cash flow from the property, and greatly reduced its risk. GMAC Commercial Mortgage provided us with the financial products necessary to close this complex financial transaction.
The Magellan opened to acclaim in Fall 2003, and achieved 100% lease-up within less than six months. Based on this success, our exposure to proprietary transactions in Manhattan has increased.