Ziel Feldman’s HFZ Capital Group is close to securing a $500 million loan to help with its purchase of a massive $870 million development site near the High Line.
SL Green and JPMorgan are in talks to provide the funds, sources told Crain’s. HFZ is planning to build an “architecturally significant” condo and hotel tower on the site.
HFZ reached a deal to acquire the property late last year from a partnership led by Edison Properties, as first reported by The Real Deal. The site, at 518 West 18th Street, stretches from 11th Avenue to the High Line between West 17th and West 18th streets. At $1,100 per foot, it would be one of the city’s priciest ever development acquisitions when it closes.
The firm has been trying for the past several months to secure the capital necessary to close the deal, amid growing concerns that the reservoir of ultra-wealthy buyers for luxury Manhattan condominiums may be drying up.