Gemdale joins Toll Brothers on Gramercy resi development

Joint venture secured $237 million construction loan for 121 East 22nd Street

Dec.December 09, 2016 11:45 AM

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 TRData LogoTINY 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.

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

Related Articles

Doug Yearley of Toll Brothers and 2686 Broadway (Credit: Google Maps and Toll Brothers)

Who’s still filing permit applications? Toll Brothers, for one

Toll Brothers CEO Doug Yearley and 77 Charlton (Credit: iStock)

Toll’s profits plunge 20% amid housing slowdown

Douglas Yearley of Toll Brothers

Homebuilder Toll Brothers looks to higher-earning millennials amid down Q3 results

Prime Minister Mette Fredriksen and President Donald Trump (Credit: Getty Images and iStock)

Well, that escalated fast: A timeline of Trump’s Greenland adventure

2686-2690 Broadway, Hank Fried of Branic International Realty (left), and Doug Yearley of Toll Brothers (Credit: Google Maps, Getty Images, and Toll Brothers)

Toll Brothers buys controversial Marrakech Hotel site for $44M

Toll Brothers' David Von Spreckelsen and 1110 Park Avenue penthouse

Toll sells penthouse at 1110 Park for $17.25M — a 50% discount

Toll Brother's David Von Spreckelsen

Watch: A sneak peak of Toll’s 121 East 22nd

David Von Spreckelsen (Photo by Adam Pogoff)

Toll’s David Von Spreckelsen on landing Rem Koolhaas’ OMA