The Real Deal New York

Chinese developer sunk $70M into 45 Broad

Gemdale is an investor in the 206-unit FiDi condo

August 17, 2016 04:30PM
By E.B. Solomont

Renderings of 45 Broad Street and Robert Gladstone

Renderings of 45 Broad Street and Robert Gladstone

One of China’s largest developers apparently paid $69.9 million for a stake in Madison Equities’ 45 Broad Street condominium, according to new public records.

Gemdale Properties and Investment’s involvement in the Financial District development was first reported in June, but the value of its stake was not previously known. Public records now show it paid nearly $70 million for an 81.3 percent stake in a portion of the project controlled by Robert Gladstone’s firm.

Gladstone is developing 45 Broad in partnership with Italian real estate company Impresa Pizzarotti & CSpA and AMS Acquisitions.

The planned, 1,100-foot tower at 45 Broad will have 206 condo units, a majority of which will be priced at $4 million and below.

According to an offering memorandum for construction financing obtained by The Real Deal in June, an affiliate of Gemdale will raise up to $55 million through the EB-5 visa program at a projected rate of 5.5 percent. Gemdale 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 partners are projecting a residential sellout of $560.6 million and a total profit of $137.2 million, the memo shows.

Gladstone previously said Gemdale was drawn to the pricing of the units. “We live in a global society; everything is a collaboration today,” he told the Wall Street Journal last year. “This allows [Madison Equities] to buy materials from two submarkets and take advantage of the best materials, price and delivery.”

Madison and partners paid $86 million for the site last year. The partners are seeking $75 million in financing from EB-5 investors for the CentraRuddy-designed project, which is expected to be completed in 2018.