Cape Advisors secures $84M in loans for new Tribeca condo

Bank of the Ozarks, Terra Capital help finance planned 23-unit project at 30 Warren

TRD New York /
Mar.March 17, 2016 05:20 PM

Who said it’s getting hard to finance new condominium projects in Manhattan? Soho-based developer Cape Advisors will proceed with its 12-story condominium project in Tribeca after securing nearly $84 million in financing from lenders.

The financing consists of a $64.8 million loan from the Bank of the Ozarks as well as a $19.1 million mezzanine loan from Terra Capital Partners. Cape Advisors will use the funding to build the planned 23-unit condo building at 30 Warren Street, located near City Hall.

The developer recently broke ground on the nearly 66,000-square-foot project, which is slated for completion in 18 months, according to Crain’s. The debt will cover between 70 to 75 percent of the development’s costs, according to mortgage broker Adam Hakim of Eastern Consolidated, who arranged the debt deal alongside colleague Sam Zabala.

While lenders have grown increasingly cautious regarding the financing of condo developments in New York, due to increasing concern over a possible supply glut of high-end apartments in the city, Cape Advisors’ plan to build nearly 11,000 square feet of retail at the building’s base added value to the project.

The market for retail space in Lower Manhattan is becoming increasingly valuable, with heightened demand from retail tenants translating to higher asking rents from landlords, according to a recent CBRE report.

Bank of the Ozarks previously provided Cape Advisors with an acquisition loan to purchase the Tribeca development site — with the lender’s familiarity with the project having made this latest loan “a lot easier” to arrange, Hakim told Crain’s.

Bank of the Ozarks also helped fund Cape Advisors’s $50 million acquisition last year of another development site nearby on West Broadway, which is also expected to hold condos. [Crain’s]Rey Mashayekhi


Related Articles

arrow_forward_ios
Toni Morrison and her former Tribeca home (Getty, BHS)

Toni Morrison’s Tribeca loft hits the market

Toni Morrison’s Tribeca loft hits the market
Silverback's Josh Schuster and 580 Gerard Avenue (Google Maps) 

Silverback plans 200-unit South Bronx Opportunity Zone project

Silverback plans 200-unit South Bronx Opportunity Zone project
Mayor Bill de Blasio (iStock; Getty)

Soho to be rezoned: de Blasio

Soho to be rezoned: de Blasio
US construction spending is up $37.8 billion year-to-date compared to 2019 (iStock)

Housing demand sent construction spending up in August

Housing demand sent construction spending up in August
Larry Korman (Photo by Emily Assiran)

The self-lockdown lifestyle of AKA’s Larry Korman

The self-lockdown lifestyle of AKA’s Larry Korman
Renderings of the project and Gil Dezer (Getty; Renderings via  Zyscovich Architects)

Dezer’s 30-acre megaproject in North Miami Beach gets first approval

Dezer’s 30-acre megaproject in North Miami Beach gets first approval
Council member Laurie Cumbo  and a rendering of the Bedford-Union Armory (Getty; Bedford Armory)

Student suspended after blasting lawmaker’s pro-development stance

Student suspended after blasting lawmaker’s pro-development stance
Nightingale’s Eli Schwartz and 111 Wall Street (Credit: Google Maps)

Nightingale, Wafra seek $860M to redevelop 111 Wall Street

Nightingale, Wafra seek $860M to redevelop 111 Wall Street
arrow_forward_ios

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

Loading...