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Macklowe set to score $850M JPMorgan loan for One Wall
Loan to cover more than half of FiDi condo conversion’s $1.5B cost
JPMorgan Chase is in late-stage negotiations to provide an $850 million construction loan for Macklowe Properties’ [TRDataCustom] office-to-residential Conversion One Wall Street in the Financial District, sources confirmed to The Real Deal.
Harry Macklowe’s firm began the search for construction financing last summer, when he was seeking $1 billion. Then, in March, the developer decided to instead increase the equity by about $200 million and seek a lower construction loan of about $850 million. The property will hold either entirely or mostly residential condominium units.
Bloomberg first reported that JPMorgan has agreed to provide the loan.
Sources said the deal is slated to close in the next two months. If it closes, it will be one of the largest residential construction loans of this cycle. JLL is brokering the loan deal.
Sheikh Hamad Bin Jassim Bin Jaber al-Thani, one of the world’s richest men and the former prime minister of Qatar, is Macklowe’s primary equity partner on the 50-story building, TRD revealed in March. Together, the partners bought it from the Bank of New York Mellon for $585 million in 2014.
JT Magen & Company was recently hired as the construction team for the $1.5 billion project, replacing Gilbane Building, which took heat for its use of nonunion labor on the conversion.
Last month, HFZ Capital Group locked in a $1.25 billion construction loan for its mixed-use Chelsea megaproject at 76 11th Avenue. Meanwhile, Related Companies is in advanced talks to secure a $2.5 billion financing package for 50 Hudson Yards, which is poised to be New York’s most expensive office building.
(To view more financing transactions from Macklowe Properties, click here)