Simon Baron secures $120M loan for Carnegie Hill conversion

Lines up non-recourse financing for building purchased earlier this month
February 25, 2014 02:05PM

Simon Baron Development has landed a $120 million loan from Goldman Sachs to convert a Carnegie Hill rental building into luxury condominiums.

Ayush Kapahi of brokerage HKS Capital Partners arranged the loan for the 13-story structure at 12 East 88th Street, between Fifth and Madison avenues, according to a press release.

“Obtaining non-recourse financing for this condo conversion transaction, reiterates that the capital markets are very much alive and willing to take risk for the right asset and the right sponsor,” Kapahi said in the release.

Simon Baron bought the property from Nostra Realty, run by the Kqiat and Ferman families, for $105 million at the beginning of the month. The Rosario Candela-designed building houses 1,800 square feet of office space as well as 65 apartments — a third of which are rent regulated, according to previous reports.

The Manhattan-based Simon Baron owns rental buildings Tower 31 at 9 West 31st Street, and the Manhattan at 244 East 86th Street. The firm also purchased a development site in Long Island City for $54 million just last week. [Press Release] — Angela Hunt