DHA Capital has scored a $100.5 million construction loan for 75 Kenmare Street, its new condominium project in Nolita.
The firm, led by Dan Hollander and Josh Schuster, received the loan from Deutsche Bank. Sources said Maverick CP’s Adi Chugh, who also arranged the financing for DHA’s 50 Clinton Street, brokered the deal.
AMS Acquisitions and First Atlantic Capital are partners on the project, which is DHA’s 10th in New York. Andre Kikoski Architect is designing the building, while musician Lenny Kravitz is handling interiors.
DHA bought the site in 2015 for about $50 million. According to an offering plan filed with the New York state Attorney General’s office in April, the projected total sellout for the 35 condos is $127 million, with unit prices ranging from $1.2 million to $12 million. The building will also have about 8,000 square feet of retail at the base.
DHA landed the money at a time when lenders are becoming far pickier about which projects they finance, due to concerns about potential oversupply and a drop in sales velocity. Though many established players are still able to score funds relatively painlessly — Spitzer Enterprises recently closed on a $330 million construction loan from Starwood Capital for 420 Kent Avenue — others have had to get more creative. Sharif El-Gamal’s Soho Properties, for example, recently tapped a global consortium of lenders to land sharia-compliant construction financing for 45 Park Place. El-Gamal’s $219 million construction financing deal is said to be the largest of its kind in the history of New York.