UPDATED, 5:25 p.m., Dec. 16: Toll Brothers brought on one of China’s largest developers, Gemdale Properties and Investment, to co-develop its luxury condominium project in Gramercy Park, the company announced Friday.
The announcement of the partnership comes just days after Toll Brothers executives said the firm was transitioning from ultra-luxury construction to meet a more robust middle-market, targeting lower price points between $2,000-$2,500 per square foot on developments smaller than 150 units.
Toll Brothers’ City Living division — which saw a big dip in revenue in 2016 — is aiming for a $503.5 million sellout at the 133-unit development at 121 East 22nd Street, which translates to roughly $3.8 million per unit (or, $2,363 per square foot). The joint venture secured a $237 million construction loan from a syndicate of five banks, including Bank of New York Mellon, Capital One, China Merchants Bank, MUFG Union Bank and CIT Bank.
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The site, located between Lexington and Park Avenues, and has previously been referred to As 122 East 23rd Street. Toll Brothers bought the development site from nonprofit United Cerebral Palsy for $150 million in September 2013, paying nearly twice what the seller expected.
The company filed plans for the 133-unit development in November 2015.
Toll Brothers City Living also developed condos nearby at the 82-unit 160 East 22nd Street. Its partner on 121 East 22nd Street, Gemdale Properties, currently operates 43 projects in China. The firm made its first investment into U.S. real estate in 2015, and earlier this year joined with Madison Equities as an investor and developer on a planned 206-unit condominium at 45 Broad Street in the Financial District. — Miriam Hall