The Real Deal New York

Breaking down the numbers on Madison Equities’ FiDi supertall

Developers seek $287M construction loan for 84-story condo at 45 Broad

June 29, 2016 01:20PM
By Mark Maurer

From left: Robert Gladstone, rendering of45 Broad Street and Dustin Stolly

From left: Madison Equities’ Robert Gladstone, rendering of 45 Broad Street and JLL’s Dustin Stolly

The developers of the proposed supertall condominium at 45 Broad Street are projecting a sellout of $624.4 million, according to an offering memorandum for construction financing obtained by The Real Deal.

Robert Gladstone’s Madison Equities is partnering with Gemdale Properties and Investment, Impresa Pizzarotti & CSpA and AMS Acquisitions on the Financial District project. The developers are looking to break ground in September on the 84-story, 1,127-foot-tall residential-and-office condominium tower.

The firms are in the market for a $287 million construction loan, about 65 percent of the projected total cost of $442 million. The desired financing is a five-year, interest-only loan that would be secured by September.

The memo also sheds light on apartment pricing and new details about the tower. The 206 apartments will ask, on average, $2.7 million apiece. Apartments will range from studios to four-bedrooms — from 601 to 3,066 square feet in size.

The gross residential sellout would come to $560.6 million, while the six-floor, 57,800-square-foot office component’s sellout would be $55 million. The partners are projecting a total profit of $137.2 million, the memo shows.

Earlier this month, Gemdale, one of the largest developers in China, joined the project as one of the developers and investors. It marks the firm’s first involvement in a New York project.

According to the memo, the developers will contribute $100 million of equity. An affiliate of Gemdale will raise up to $55 million through the EB-5 visa program at a projected rate of 5.5 percent. The Chinese developer also agreed to fund bridge capital up to $55 million if the EB-5 funding doesn’t come through at the time of the construction loan’s closing, the memo states.

The project’s total $442 million cost includes the $86 million that Madison and partners paid for the vacant land in October. At the time of the purchase, Madison also secured a $75 million acquisition loan.

The developers intend to file an offering plan with the New York state Attorney General’s Office in November. Sales are slated to launch June 2017, with construction wrapping up by August 2019, the memo shows. Unit closings are set for September 2020.

Douglas Elliman is handling sales at the tower, while CetraRuddy is the architect.

A JLL team led by Dustin Stolly and Jonathan Schwartz is handling the search for financing. Neither the brokers nor the developers could be reached for comment.

Other supertall towers in the pipeline Downtown include Bizzi & Partners, New Valley and Shvo’s 125 Greenwich Street; Time Equities’ 50 West Street; Macklowe Properties’ One Wall Street; Silverstein Properties’ 30 Park Place; and Soho Properties’ 45 Park Place.

Many of these towers are competing for financing in a lending environment that is far less friendly to new condo projects than it was two years ago. This has forced some developers to get creative: Sharif El-Gamal’s Soho Properties, for example, scored $219 million in financing for 45 Park Place through a diverse consortium of foreign lenders, using an Islamic financing structure known as murabaha.

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