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

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

New York /
Mar.March 14, 2016 03:10 PM

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.

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.


Related Articles

arrow_forward_ios
Starwood Property Trust's Barry Sternlicht (Getty, iStock)
“Good luck finding people”: Sternlicht warns of labor shortage for infrastructure bill
“Good luck finding people”: Sternlicht warns of labor shortage for infrastructure bill
Sam Zell (left) and Barry Sternlicht (Photos by Studio Scrivo and Emily Assiran)
Battle of Monmouth: Zell and Sternlicht’s $2B struggle over warehouse REIT
Battle of Monmouth: Zell and Sternlicht’s $2B struggle over warehouse REIT
Starwood Property Trust CEO Barry Sternlicht (Getty, iStock)
Washington is “putting kerosene on an open fire” with spending bills: Sternlicht
Washington is “putting kerosene on an open fire” with spending bills: Sternlicht
Naftali purchase pits neighbor against neighbor
Naftali building clear-out pits neighbor against neighbor
Naftali building clear-out pits neighbor against neighbor
Blackstone CEO Stephen Schwarzman and Starwood CEO Barry Sternlicht (Getty)
Here’s an inside look at Extended Stay’s 62K-key portfolio
Here’s an inside look at Extended Stay’s 62K-key portfolio
215 West 84th Street and Naftali Group CEO Miki Naftali (Google Maps, Getty)
After $71M building purchase, Naftali tells tenants to scram
After $71M building purchase, Naftali tells tenants to scram
215 West 84th Street and Miki Naftali (Google Maps, Getty)
Naftali Group picks up UWS apartments for $71M
Naftali Group picks up UWS apartments for $71M
Starwood CEO Barry Sternlicht and Blackstone CEO Stephen Schwarzman (Getty)
Blackstone, Starwood up bid for Extended Stay America
Blackstone, Starwood up bid for Extended Stay America
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...