Ben Shaoul scores $195M loan for 196 Orchard

Senior construction mortgage from SL Green for LES condo replaces previous financing

Sep.September 23, 2016 06:05 PM

Ben Shaoul’s Magnum Real Estate Group secured a $195 million senior construction loan from SL Green Realty for its new Lower East Side condominium project next to Katz’s Deli, sources told The Real Deal.

The senior loan for the project at 196 Orchard Street replaces the existing $97 million loan that SL Green provided last year for pre-development and acquisition costs, sources said.

The 11-story building will hold 96 apartments as well as about 50,000 square feet of retail space. Magnum, which received approval from the New York Attorney General’s office for the condo offering plan in May, is projecting a residential sellout of $206.9 million, state records show.

Apartment sales launched this week at the project, where units range in price from $1.1 million to $5.6 million. The average price per square foot comes out to $2,275.

The Ismael Leyva-designed project’s total construction cost is said to be in the low-$200 million range, sources said. Foundation work is about to begin, sources said.

Magnum is developing the building in partnership with Real Estate Equities Corporation. The firms paid $75 million for an assemblage of three adjacent parcels in 2014.

A JLL team led by Aaron Appel brokered the financing deal. Appel and Shaoul declined to comment.

Of the 50,000 square feet planned for retail, Equinox has already leased 30,000 square feet. Ripco Real Estate’s Richard Skulnik is marketing the remaining retail space, while Compass’ Leonard Steinberg is handling apartment sales.

Related Articles

The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt

SL Green’s locks in big bank lease at Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site

1185 Sixth Avenue (Credit: Google Maps)

3 workers test positive for coronavirus at 3 SL Green office towers

315 West 33rd Street, SL Green's Marc Holliday and Brookfield's Ric Clark (Credit: SL Green, Getty Images)

Brookfield fund buying SL Green’s 315 West 33rd Street for $447M

JLL President and CEO Christian Ulbrich & JLL Global Chief Financial Officer Stephanie Plaines (Credit: iStock, JLL)

JLL still riding revenue wave after HFF acquisition

Glenn Tolchin and Yoav Oelsner (Credit: Jll; Getty Images)

Former JLL brokers launch boutique sales firm

AKS Capital Partners Managing Partners Aaron Appel and Walker & Dunlop CEO Willy Walker

Walker & Dunlop acquires Aaron Appel’s AKS Capital Partners