White Plains project clears financing hurdle. (Design and Development).

A key milestone in the creation of City Center at White Plains has been reached with the announcement of a financing package between the project's developer, Louis R. Cappelli, and a syndication of banks and other lenders. The project, which is already under construction, is scheduled to open in Oct. 2003.

The complex financing package, which was announced on Apr. 24, has been in negotiation for several months. It will provide $190 million of the $240 million construction cost for the first phase of the project. This phase includes approximately 500,000 SF of retail and entertainment space, a 35-story, 300-unit residential rental apartment tower on Main Street, and a new 2,370-space parking garage.

Financing for the retail component is being provided by the Canadian Imperial Bank of Commerce, ULLICO, a pension fund, and Target Stores, which will be the largest retail tenant at the development. Financing for the residential component is being provided by CIBC and Charter One.

The $40 million parking garage is being funded with $23 million from the City of White Plains and $17 million from Union State Bank.

Louis R. Cappelli, president of Cappelli Enterprises, said that the completion of the financing package is the most important step in the creation of City Center since the city gave the final go-ahead for the project. "This is a huge step forward. for our company, for the project, and for the City of White Plains," he said. "Using our own capital we have already been working for nine months to ensure that the project remains on schedule. During that time we have completed demolition of the old Macy's store, including removal of an extensive series of foundations that were beneath it, and we have moved rapidly in preparing the site for construction of the new buildings."

In addition to Target, tenants with signed leases at City Center include National Amusements, with 80,000 SF of space for a state-of-the-art 15-screen movie complex; Circuit City Store, Legal Seafoods, Applebee's, and Zanaro's, as well as Greenpoint Bank.

Cappelli said that numerous additional leases are in various stages of negotiation and that further leasing announcements can be expected in the coming weeks.

With respect to the second 300-unit residential tower, the company is weighing various approaches, including whether or not it will be a rental building or a condominium. "We felt that at this stage it was important to move ahead with the first tower and the retail and entertainment aspects, while at the same time giving ourselves the time needed to carefully evaluate these other major components," Cappelli said. "By taking a two-phase approach, we gain the time and flexibility needed to properly explore how best to approach the other components."