Toll Brothers, SMI snag $144M loan for 91 Leonard

UnionBank provided the financing for the condo building
By Will Parker | November 16, 2017 02:19PM

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David Von Sprecklesen and rendering of 91 Leonard Street (credit: Toll Brothers City Living)

Toll Brothers City Living and its new equity partner SMI USA secured $144 million in construction financing for the condominium project at 91 Leonard Street, documents filed with the city Thursday show.

SMI USA, the American arm of Shanghai Municipal Investment, China’s largest state-owned company, paid $73 million for its equity stake in the project earlier this month.

MUFG Union Bank is the lead provider of the debt, which breaks down into a $41 million senior loan, a $62 million building loan and a $41 million project loan, the filings show. According to a Nov. 3 press release, Santander Bank and CIT Bank are also lenders (the construction loan amount hasn’t been previously reported)

A representative for Toll Brothers did not immediately respond to a request for comment.

The New York State Attorney General’s office accepted the offering plan for the Tribeca development in October. When completed, 91 Leonard will hold 111 condos. The projected total sellout price is $309 million. The developers launched sales late last month,

Earlier this year, Toll Brothers introduced buyer incentives across several of its condo projects, in response to a slowdown in the luxury condo market. “As everyone knows, there’s more supply than there has been in previous years, so we want to help distinguish ourselves and get people in the door,” David Von Spreckelsen, president of the city living division, said in April.

SMI has quickly become a prominent equity backer of condo projects in Manhattan. With Extell Development, it invested last year in the most expensive condo plan in city history at the upcoming Central Park Tower. At 520 Fifth Avenue, the company is partnering with Ceruzzi Properties to build a 72-story condo tower.