The Real Deal New York

Six Sigma gets $77M loan for High Line condo project

Jason Lee's firm moving ahead with 12-story building on 29th St.
By Mark Maurer | May 30, 2017 06:15PM

Renderings of 517-523 West 29th Street (credit: Six Sigma) and Jason Lee

Jason Lee’s Six Sigma NYC TRData LogoTINY pulled off a $77 million construction loan to build a condominium project on West 29th Street near the High Line, the developer told The Real Deal.

Six Sigma NYC, a development and construction firm, closed Tuesday on the loan, which will allow for the 53-unit, 12-story ground-up condo building at 517-523 West 29th Street. The Chelsea property is slated to replace a six-story Tuck-it-away self-storage warehouse on the site, between 10th and 11th avenues.

The lender was Churchill Real Estate Holdings, a Nolita-based affiliate of Zach Vella and Justin Ehrlich’s development firm VE Equities. Churchill could not be immediately reached for comment.

Lee said asking prices for the condo units will begin around $1.2 million or $1.3 million. It is unclear what the penthouses will ask.

Six Sigma bought the warehouse for $54.8 million in 2015 from self-storage mogul Nicholas Sprayregen, and then paid a sky-high $800 per buildable square foot – or $3.9 million – for 4,900 square feet of air rights last year. The company filed plans for a 56,000-square-foot building, with three to five apartments per floor, in March.

The project is Six Sigma’s biggest yet. The firm largely develops boutique condos with only a handful of pricey apartments, including the four-unit 56 Walker Street in Tribeca.

Churchill provided a $27.5 million loan last year to developer Charles Saulson for his Lower East Side condo at 204 Forsyth Street.

(To view more new development projects in Chelsea, click here)