HDC Closes on a 904-Unit Frank Gehry Designed Tower in Lower Manhattan

NEW YORK, N.Y., March 28, 2008 – Today, The New York City Housing Development Corporation (HDC) closed a $680 million construction loan with an affiliate of Forest City Ratner. The project will use Liberty Bond and taxable bond proceeds for the new construction of a 904 unit apartment tower in Lower Manhattan located at 60 Beekman Street.

The Liberty Bond issuance represents the last of HDC’s allocation. The New York State Housing Finance Agency (HFA) also contributed $13.9 million from its Liberty Bond allocation to make this exciting development possible.

“Beekman Tower is among HDC’s most notable financings to date” according to Marc Jahr, President of the New York City Housing Development Corporation. “I’m confident that this striking Frank Gehry designed building will provide a powerful impetus to the continuing transformation of Lower Manhattan into a vibrant live-work neighborhood.”

The Liberty and taxable bond proceeds will be used by FC Beekman Associates, an affiliate of Forest City Ratner, to construct 904 residential units and approximately 1,500 square feet of retail space. Beekman Tower will also include a separately financed ambulatory care center to be operated by the New York Downtown Hospital; a below grade 175-space parking garage; and a pre-K through 8th grade Public School to be owned and operated by the New York City Department of Education.

“Beekman Tower will be a fantastic addition to Lower Manhattan, and today’s announcement serves as the latest example of the ongoing realization of Mayor Bloomberg’s vision of the area as a mixed-use 24/7 neighborhood,” said Deputy Mayor for Economic Development Robert C. Lieber. “In addition to the new building itself providing housing, parking and a new school Downtown, the transaction will also provide much-needed funding for the creation of affordable housing, and I congratulate and thank HDC for helping to get it done.”

Not only has the residential Liberty Bond program helped jump start the transformation of the financial district into a 24/7 community through projects like the Beekman Tower, it has also generated significant funds for affordable housing development. The Beekman Tower Liberty Bond financing generated approximately $6 million in fees that HDC will devote to financing affordable housing. To date, HDC has constructed 467 affordable housing units using approximately $31.4 million in fees derived from previous Liberty Bond transactions.

Bruce Ratner, Chairman and CEO of Forest City Ratner, said, “It is especially gratifying in this economic climate to have leading financial institutions show this kind of confidence in our Beekman project. This project could not have happened without the Support Speaker Silver, Mayor Bloomberg, Deputy Mayor Deputy Mayor Leiber, HPD Commissioner Donovan, NYC HDC President Marc Jahr, LMDC President David Emil and Chairman Avi Schick and all of the local community leaders.”

The New York City Housing Development Corporation (HDC) provides a variety of financing programs for the creation and preservation of multi-family affordable housing throughout the five boroughs of New York City. HDC is implementing Mayor Bloomberg’s New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing over ten years. The New Housing Marketplace Plan is the largest municipal affordable housing effort in the nation’s history. Our programs are designed to meet the wide-range of affordable housing needs of the City’s economically diverse population.

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