The Bauhouse Group has secured a $35 million construction loan from Doral Bank to finance its condominium-and-retail project in Chelsea.
The developers acquired a 35,000-square-foot, six-story warehouse at 515 West 29th Street for $24.4 million in September, and purchased three additional parcels of air rights for a total of $6 million in March. Until now, the project has been financed by equity, the New York Observer reported.
The 30-month construction loan, arranged by Wolfson Capital, carries a 6 percent interest rate.
“We are pleased to have a project that is fully financed through completion,” Joseph Beninati, a manager at the Bauhouse Group, told the Observer.
Construction on the development started last month, and marketing, which the Corcoran Group is handling, is slated to start in the fall.
Last week, Beninati was hit with a $10 million lawsuit, in which he and others were accused of falsely claiming to hold a 10 percent stake in PicShare, as The Real Deal reported. [NYO] — Sasha von Oldershausen