September 6, 2024

The Marino Group Secures $275 Million Loan for Midtown Manhattan Project in Partnership with South Korean Investors

New York, NY – The Marino Group, led by Dom Marino a senior executive at Fortis Investment, has successfully negotiated and secured a $275 million loan from South Korean financial entities for an ambitious new development in the heart of Midtown Manhattan. The loan marks a significant achievement for the group, who have been with Fortis for a decade, further cementing their reputation as leading figures in New York City’s real estate investment space.

The project, which remains unnamed, is set to be a cornerstone development in Midtown, a neighborhood renowned for its iconic skyline, vibrant business environment, and proximity to key transit hubs like Grand Central Station and Penn Station. Fortis Investment’s long-term strategy for this venture emphasizes capitalizing on the highly desirable location and the anticipated favorable shift in economic conditions.

Viability of the Investment

Midtown Manhattan continues to be one of the most sought-after real estate markets globally, boasting a combination of prime office spaces, luxury retail, and high-end residential developments. The newly secured financing from South Korean concerns speaks to the international confidence in both Marino’s leadership and Fortis Investment’s track record.

According to Marino, “Securing this loan is a testament to Fortis Investment’s reputation for sound financial planning and strategic growth. The Midtown project will further enhance our portfolio and contribute to the ongoing transformation of New York City.”

The project is expected to benefit from several key factors that make this investment particularly attractive:

1. Location: Midtown Manhattan is experiencing sustained demand from global businesses, high-net-worth individuals, and commercial tenants. The project’s proximity to major corporations and retail corridors ensures a steady flow of interest and leasing opportunities.
2. Desirability: Manhattan continues to draw interest from international investors and tenants due to its central role in global finance, commerce, and culture. The Midtown area, in particular, is undergoing a resurgence as companies return to office spaces post-pandemic, further enhancing property values.
3. Expected Lowering of Interest Rates: Economic analysts predict that interest rates could decline over the coming years, making it easier for developers to secure more favorable financing terms. A drop in interest rates could improve overall project profitability, allowing Fortis to leverage its capital at a lower cost while maximizing returns.

Projected Returns

Based on preliminary estimates, the Midtown project could see an annual return on investment (ROI) of 12-15% over the next five years, driven by strong leasing demand and capital appreciation. Marino and his team believe that as interest rates stabilize or decrease, the value of Midtown properties will only rise, offering Fortis Investment and its South Korean partners a lucrative exit strategy.

“New York is a resilient market, and we’re poised to take advantage of the coming shifts in both real estate demand and financing conditions. This project exemplifies our commitment to increasing our footprint in the metro area while delivering strong returns for our investors,” Marino added.

Expanding Fortis Investment’s Footprint

Having been with Fortis Investment for 10 years, Dom Marino has played an integral role in its rise as a major player in the New York City real estate market. His ability to navigate complex negotiations, secure international financing, and lead high-profile projects has established him as a vital asset to the company.

Marino’s latest success with the South Korean partnership is expected to drive further expansion opportunities for Fortis Investment, as the firm continues to build its portfolio across Manhattan and beyond. With a focus on sustainable growth and strategic development, Fortis Investment is well-positioned to thrive in an ever-competitive market.

The Midtown project is just the beginning of what promises to be a period of aggressive growth for the firm, with Marino at the helm of its next ventures.

Conclusion

The acquisition of the $75 million loan from South Korean investors represents a major milestone for both Dom Marino and Fortis Investment. With its strong location, strategic timing, and promising returns, the Midtown Manhattan project is set to elevate Fortis’s standing in the competitive New York City real estate market. As interest rates fall and demand for premium real estate continues to rise, Fortis Investment is primed for success.

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98 new dev contracts, 9 boutique dev launches in the borough last month

Sep 5, 2024, 2:00 PM

By  Jake Indursky

The summer has been a confounding one for new development, with the luxury market slumping and Manhattan and Brooklyn showing no clear trends. 

That behavior continued into August in which Brooklyn saw contracts spike year-over-year, the luxury market sputtered and Manhattan held its ground, according to Marketproof’s monthly report. 

The city saw a total of 246 contracts signed last month, up slightly from 236 deals last year. The median price per square foot was down 11 percent to $1,550, and days on market fell 4 percent to 119. 

Marketproof CEO Kael Goodman said that following the mixed signals in August, the next few months should provide a “clear answer” on how buyers are reacting to falling mortgage rates. At the end of August the average 30-year fixed mortgage was 6.35 percent, the lowest it’s been since May 2023. 

And while demand was up slightly, inventory ticked down to 10,532 available units as no new Manhattan projects came online this quarter. Meanwhile, in Brooklyn, nine boutique projects launched, adding 69 units, and in Queens four projects added 87 units.

Jason Thomas, senior vice president of research and analytics at Brown Harris Stevens Development Marketing said development launches in the outer borough have a “quicker launch cycle” than Manhattan projects.

Manhattan saw 123 new development contracts signed in August compared to 116 last year. The median asking price was $2 million and the median price per square foot was $2,084.

520 Fifth has continued to be Manhattan’s standout project, signing nine contracts on one- and two-bedroom units. Rabina’s 99-unit supertall has now sold 61 percent of its units after netting an additional 21 contracts in July and 27 in June. 

Thomas said the building has capitalized on the prestige of a Fifth Avenue address and its reasonable price per square foot. Of the non-penthouse units currently listed on StreetEasy, most don’t crack $3,000 per square foot. Corcoran Sunshine Marketing launched sales for the building in April.

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The luxury market had its third straight month of declining deals, with 24 contracts signed at $4 million or more, two less than last August. 

For a third straight month, 50 West 66th Street led the luxury market, signing four more contracts over $4 million in the 121-unit building. Extell Marketing Group, with the support of The Corcoran Group and Douglass Elliman, is leading sales for the project.

After a meandering start to the summer, the Brooklyn new development market ended with a bang as 98 deals were signed in the borough, a 28 percent increase compared to last year. Deal volume signed in the borough was the highest since May 2023. The median asking price was $1.3 million and the median price per square foot was $1,299.

“I think that Brooklyn is starting to really sort of outpace Manhattan,” Serhant head of research Coury Napier said of the borough’s quickening pace of signings.

Kensington Manor, a new 76-unit project at 428 East 9th Street, led Brooklyn with 10 contracts on studio and one-bedroom units. Goodman said that entry-level units like the ones at Kensington Manor, which are priced between $370,000 and $590,000, have been selling well. Corcoran’s Danielov Team launched sales for developer ZHL Group two months ago. 

While the 24 contracts signed in Queens was one more than last month, it was nearly half as many as the 43 signed in August last year. The median price was $923,000 and the median PPSF was $1,196.

The Vela, a 29-unit project in Astoria, led the borough with four contracts on one- and two-bed units. 

Serhant launched sales in November of last year.