Chetrit Group secures $194M loan package for 49 Chambers Street condo conversion

SL Green, Acore Capital are the lenders on the FiDi project

Dec.December 05, 2016 05:00 PM

UPDATED, 12:20 p.m., Dec. 6: The Chetrit Group scored $194 million in financing for its condominium conversion at 49 Chambers Street in the Financial District.

The financing package includes a $70 million building loan and a $33 million project loan, according to records filed with the city on Monday. Real estate finance company Acore Capital provided 65 percent of the loan and real estate investment trust SL Green Realty provided the remaining 35 percent of debt funding. The lenders also took over an existing $85 million loan from MSD Capital, and provided an additional $6 million in mezzanine funding, totaling $194 million. Iron Hound Management represented Chetrit in the debt deal.

Chetrit plans to turn the property at 49 Chambers, which was once home to Emigrant Industrial Services Bank and the New York City government agencies, into 81 condos. The company is aiming for a $334 million sellout for the 14-story Beaux-Arts building, which it bought from the city in 2013 for $89 million.

In April, Chetrit and Clipper Equity abandoned a plan to turn to the Sony Building at 550 Madison Avenue into luxury condos, selling the property to Olayan America for $1.4 billion. SL Green Realty had provided $300 million in mezzanine debt for Chetrit to acquire 550 Madison in 2013.

SL Green Realty — one of the city’s biggest office landlords — has emerged as one of the biggest alternative lenders in New York City in recent years. It’s a lender on HFZ Capital Group’s gargantuan High Line project, and it’s originated loans for Industry City, Jared Kushner’s refinancing of a Times Square retail condo, and RPW Group’s acquisition of 275 Madison Avenue, among others.

Acore Capital, formed last year by Starwood Property Group alums, is also lending Brack Capital Real Estate $82.5 million for its $327 million condo conversion at 627 Greenwich Street.

Representatives from the Chetrit Group, SL Green and Acore Capital did not immediately return requests for comment.

Clarification: An earlier version of this story did not include an existing $85 million loan the lenders took over from MSD Capital. It also did not include an additional $6 million in mezzanine financing.

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