The Real Deal New York

Ben Shaoul scores $195M loan for 196 Orchard

Senior construction mortgage from SL Green for LES condo replaces previous financing

September 23, 2016 06:05PM
By Mark Maurer Twitter_logo_blue copy

Rendering of 196 Orchard Street and Ben Shaoul (credit: Michael McWeeney)

Rendering of 196 Orchard Street and Ben Shaoul (credit: Michael McWeeney)

Ben Shaoul’s Magnum Real Estate Group secured a $195 million senior construction loan from SL Green Realty for its new Lower East Side condominium project next to Katz’s Deli, sources told The Real Deal.

The senior loan for the project at 196 Orchard Street replaces the existing $97 million loan that SL Green provided last year for pre-development and acquisition costs, sources said.

The 11-story building will hold 96 apartments as well as about 50,000 square feet of retail space. Magnum, which received approval from the New York Attorney General’s office for the condo offering plan in May, is projecting a residential sellout of $206.9 million, state records show.

Apartment sales launched this week at the project, where units range in price from $1.1 million to $5.6 million. The average price per square foot comes out to $2,275.

The Ismael Leyva-designed project’s total construction cost is said to be in the low-$200 million range, sources said. Foundation work is about to begin, sources said.

Magnum is developing the building in partnership with Real Estate Equities Corporation. The firms paid $75 million for an assemblage of three adjacent parcels in 2014.

A JLL team led by Aaron Appel brokered the financing deal. Appel and Shaoul declined to comment.

Of the 50,000 square feet planned for retail, Equinox has already leased 30,000 square feet. Ripco Real Estate’s Richard Skulnik is marketing the remaining retail space, while Compass’ Leonard Steinberg is handling apartment sales.