The Real Deal New York

Aurora, Gottlieb secure $55M loan for Gansevoort project

The development has faced significant community opposition
By Will Parker | February 22, 2017 04:10PM

The Construction Site On Gansevoort Street (Credit: Google Maps)

A judge ordered them to stop the work. But it won’t stop the money.

Aurora Capital Associates and William Gottlieb Real Estate, the forces behind the Gansevoort Street redevelopment project in the Meatpacking District, took a $55 million mortgage backed by two buildings at the site, according to documents filed with the city Wednesday.

The developers, whose construction progress is currently at the mercy of a lawsuit brought by the Save Gansevoort group that opposes the project, were ordered by New York State Supreme Court Justice Joan Lobis to stop work on two buildings at the site earlier this month.

One of those buildings, 52-58 Gansevoort Street, is financed in the new loan from Signature Bank

Jared Epstein TRData LogoTINY of Aurora Capital declined to comment on the new financing.

Although the commercial-use project was approved by Landmarks Preservation Commission last year, some area residents have continued to protest the approved design, complaining that the scale of the buildings is far too large for the neighborhood, as proposed. In its lawsuit against Landmarks, Save Gansevoort claims that the project is “out-of-character” with the historic development norms that the commission is supposed to protect.

Aurora Capital and William Gottlieb’s project, when completed, will bring 110,00 square feet of space to the Meatpacking District. A brasserie-style restaurant, Pastis, is slated to open at the development later this year.

Recently, brokerage Denham Wolf Real Estate Services sued both the developers and luxury retail tenant Maiyet for allegedly stiffing the firm out of $10 million in commissions.