Developers of 125 Greenwich in talks with Singaporean bank for $500M-plus construction loan

United Overseas Bank preparing term sheet to finance FiDi supertall

TRD New York /
Feb.February 05, 2016 05:25 PM

The developers of a supertall Financial District condominium tower at 125 Greenwich Street are in advanced talks to land just north of $500 million in construction financing, separate from a round of EB-5 funding, The Real Deal has learned.

The lender, sources said, is Singapore’s United Overseas Bank, which would provide a three-year construction loan with a one-year extension option. The developers, Bizzi & Partners, Michael Shvo’s SHVO and Howard Lorber’s New Valley LLC, have yet to sign a term sheet, but are in advanced discussions, according to sources familiar with the financing.

The prospective lender has plans to syndicate the massive debt deal, though no other lenders are involved at this time, those sources said.

U.O.B. originated a $135 million land loan for 125 Greenwich in August 2014, property records show. The new construction loan will replace the acquisition financing and provide the sponsors with roughly $375 million in additional funding for the development project.

Separately, the developers are in the process of raising $175 million in subordinate construction financing through the EB-5 program. They have secured about half of the subordinate EB-5 funds, sources said, and the rest of the $175 million will be advanced before the construction loan closes.

Representatives for Bizzi & Partners and Shvo declined to comment, while representatives for U.O.B. and Lorber could not be reached.

U.O.B.’s $135 million land loan was part of the $240 million in debt and equity financing that Howard Michaels’ Carlton Group arranged last year for the project.

The projected total cost for the 91-story, 275-unit tower, slated for completion in 2017, is not yet clear.

Despite the continued financing of large condo projects in New York City, several brokers and lenders have observed that U.S. banks are either cutting down their luxury condo construction lending or stepping away from the market altogether, as TRD reported earlier this week.

Asian banks may increasingly fill that void, sources said.

Konrad Putzier contributed reporting.


Related Articles

arrow_forward_ios
125 Greenwich Street

Florida developer takes over defaulted debt on 125 Greenwich

From left: Davide Bizzi, Howard Lorber and 125 Greenwich

Senior lender files to foreclose on 125 Greenwich

The LaLanne exhibit at The Real Deal’s event in October

Michael Shvo to unveil tropical gardens with LaLanne exhibit at the Raleigh in Miami

Howard Lorber and a rendering of the Bristol

Howard Lorber picks up unit at the Bristol in West Palm Beach

From left: Ben Carson and Grant Cardone

Opportunity Zones, luxury residential pricing, the diversity dilemma and more at TRD Miami’s Showcase & Forum

South Florida developers riff on the shift from condos to rentals: TRD Miami Showcase & Forum

South Florida developers riff on the shift from condos to rentals: TRD Miami Showcase & Forum

E.B. Solomont (Photo by Anuja Shakya)

The Real Deal’s E.B. Solomont receives Front Page Award

The Coca-Cola building at 711 5th Avenue (Credit: Google Maps and iStock)

Flipped off: The inside story of Coca-Cola’s botched building sale

arrow_forward_ios