Manhattan, NY According to Jonathan Aghravi of JBA Equities, his team has secured a $56 million construction loan for 541-545 West 21st St., an eight-story vacant warehouse that will be converted into office space with retail on the ground floor. The financing was provided by G4 Capital Partners.
Aghravi originated the construction loan, and along with Charles Han represented the borrower, Erbo Properties LLC. The construction loan follows a $23.4 million bridge loan Aghravi and his team arranged for the borrower in March to recapitalize the existing debt and provided funding for predevelopment costs.
G4 executives on the deal included co-managing principals Jason Behfarin and Robyn Sorid.
The new construction loan will finance efforts to turn the existing warehouse into a modern office and retail building that conforms to the high-end quality of West Chelsea. Ownership will be looking to secure a wide range of creative office and premium retail tenants.
“This is an exciting project,” Aghravi said. “We’re proud to have structured the initial bridge loan with G4 to help the new owner recapitalize the deal, and now to arrange construction financing that will fully activate this site. G4 was a pleasure to work with and both the borrower and lender worked expeditiously to close the loan.”
The project will be renovated by Ray Cecora and Peter Cecora of Higher Ground Development in partnership with the owner. Located half a block from the Highline, the property was previously occupied by Crozier, an art-storage business. Renovations will include modernizing the space, adding new elevators, a new facade, larger windows, and rooftop amenities for a state-of-the-art building that will offer tenants loft spaces with high ceilings and modern, industrial finishes.