The Real Deal New York

HFZ closes on $1B High Line deal

Purchase of 518 West 18th Street one of the city’s priciest development acquisitions

May 07, 2015 03:29PM
By Konrad Putzier

From left: HFZ's Ziel Feldman, 518 West 18th Street , and Carlton's Howard Michaels

From left: HFZ’s Ziel Feldman, 518 West 18th Street , and Carlton’s Howard Michaels

UPDATED, May 7, 5:16 p.m.: Ziel Feldman’s HFZ Capital Group has closed on the acquisition of a $870-million High Line development site after securing $1 billion in financing.

The financing will cover the  purchase price for 518 West 18th Street, as well as other pre-development expenses, according to sources. A group including JPMorgan, BlackRock and SL Green provided the money.

Howard Michaels’ Carlton Group represented HFZ in the transaction. Michaels couldn’t be reached for comment. According to sources, 70 percent of the financing package is a loan and the rest equity.

HFZ reached an agreement to buy the site, located between 11th Avenue and the High Line, last year. The financing will now allow the developer to close on one of the most expensive development acquisitions ever recorded in New York, at $1,100 per square foot.

“We have a unique opportunity at 76 Eleventh Avenue to develop an architecturally significant project with unparalleled views of the river and the skyline of New York,” Feldman said in a statement.