Meridian Capital Group, LLC, one of the leading national commercial real estate finance and advisory firms, negotiated a $29 million acquisition and construction loan for the development of a new residential condominium project in the Chelsea neighborhood on behalf of Six Sigma. This transaction was negotiated by Meridian Capital Group associate, Aggelos Sklavenitis, who is based in the company's New York City headquarters.
The financing was provided by Knighthead Funding, LLC. Knighthead Funding is a real estate finance company specializing in bridge loans and other alternative debt financing to meet capital needs in a variety of unique lending situations. Knighthead Funding was able to structure a 30-month interest-only loan providing $29 million towards the acquisition, construction and development. This creative financing, coupled with the sponsor's equity, creates a total capitalization of $41.3 million or $1,500 per buildable s/f.
The development site is located at 435 West 19th St., between Ninth Ave. and Tenth Ave., in New York City's Chelsea neighborhood and one block from the Highline Park. The property is currently configured as a five-story, 21,800 s/f office property and will be expanded into a nine-story, 27,500 s/f residential condominium.
"Chelsea is one of the most active and desirable luxury condominium development markets in Manhattan. Meridian was able to leverage its long-standing relationship with the principals of Knighthead, effectively communicate the uniqueness of the project and emphasize the sponsor's ability to execute the business plan in order to obtain higher leverage financing for this development. Ultimately, the sponsor's vision, in combination with the lender's creativity, has enabled this unique boutique property to move forward and it will no doubt set a new standard for the luxury condominium development marketplace," said Mr. Sklavenitis.
"Manhattan's residential market fundamentals continue to show tremendous strength. This project's proximity to the Highline in Chelsea, in conjunction with the sponsor's successful development track-record, created a compelling financing opportunity," said Brian Sullivan, Vice President of Knighthead Funding.
"We are very excited about this new condominium project. The character of the Highline neighborhood allows us to create a very unique product that offers residents with luxury resort living in the city. With a private sky garage and private swimming pool in each condominium unit, residents get to experience a lifestyle in New York City like never before," said Johnny Wan, Managing Director, of Six Sigma NYC. Tags: