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New York

Naftali, Starwood Capital score $66M loan for West Village condo conversion

HSBC refinancing to pave way for 42 units at 275 West 10th Street

From left: Miki Naftali, 275 West 10th Street and Starwood's Barry Sternlicht
From left: Miki Naftali, 275 West 10th Street and Starwood's Barry Sternlicht

Starwood Capital Group and the Naftali Group refinanced their West Village condominium conversion at 275 West 10th Street with a $65.9 million loan from HSBC Bank, according to property records filed with the city late last week.

The new loan replaces a $5 million mortgage, also from HSBC, that the developers secured in May 2014 immediately after buying the landmarked 12-story, 137,000-square-foot rental building for $68.2 million.

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In 2014, Starwood Capital and Naftali planned to convert the building’s 145 rental apartments into 42 condos. The plans quickly hit a snag when a wealthy couple occupying the building’s penthouse refused to leave, despite seeing their rent rise from $7,800 to $25,000 between 2013 and 2015. Last year, the Naftali Group sued the tenants, claiming their refusal to leave had cost the developers $25 million in construction delays.

Rockrose Development first turned the aging industrial building, built in 1896, into apartments in 1979.

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Naftali GroupStarwood Capital