Related had 30 unsold condos at Zaha Hadid-designed 520 West 28th Street. So it refinanced

Things are picking up as building nears completion, spokesperson says
By Will Parker | August 17, 2017 10:30AM

From left: Stephen Ross, Zaha Hadid and 520 West 28th Street (Credit: Getty Images)

Related Companies refinanced its unsold condominium units at the Zaha Hadid-designed 520 West 28th Street, loan documents filed with the city Wednesday show.

KKR Real Estate Finance Trust extended $162 million in debt backed by 30 unsold apartments and the building’s retail space.

The financing provides a window into sales at the distinctive 40-unit development project, situated along the Chelsea High Line.

The offering plan, with a current total sellout value of $434 million, was first accepted for sale to the public in June of 2015. And in June of this year, the building received its temporary certificate of occupancy, meaning unit buyers can legally move in.

But it appears that at the time of refinancing, Related had only closed on at most 10 apartments since first launching marketing in October 2015. Given the large target sellout, the average asking price for apartments is well over $10 million, putting many of the units in a luxury asset class that has proven difficult for developers to liquidate over the past two years.

When reached for comment, a spokesperson for Related said the number of unsold units in loan documents was “old” and did not include units in contract at time of the refinancing. The spokesperson added that since the building opened model residences for interested buyers, there have been five new transactions. The company is yet to release updated sales numbers.

In late July, the owners of the Nasty Gal fashion line closed on two units in the building.

The building is amenity-laden, with storage units controlled by robots. In April, the developer released photos of two completed units at the building, priced at $4.9 million and $15 million. respectively.

520 West 28th Street is located just south of Related’s multi-billion dollar, multi-skyscraper office development at Hudson Yards on Manhattan’s west side.

Hadid died in March of 2016.