The Real Deal New York

Silverstein, Elad land $300M condo inventory loan for 1 West End

Financing puts leverage on 109 apartments at 246-unit building
By Rich Bockmann | January 17, 2018 04:30PM

Larry Silverstein and 1 West End Avenue

UPDATED, Jan. 22, 2:51 p.m.: Silverstein Properties and Elad Group scored a $300 million condominium inventory loan from Deutsche Bank to refinance more than 100 units at their 1 West End project.

The $308.6 million loan covers 109 apartments at the 42-story, 246-unit building designed by Pelli Clarke Pelli on 11th Avenue between West 59th and 60th streets, property records filed with the city Wednesday show. The financing also covers one retail condo and two garages.

A representative for Silverstein was not immediately available to comment.

Deutsche Bank provided $123.6 million of new financing, and assumed a balance of $184.9 million in existing debt on the property from previous loans. Wells Fargo provided $350.8 million in construction financing for the tower in 2014.

The developers launched sales at the building, part of the massive five-building Riverside Center development, in mid-2015. Last spring, they switched out sales agents at Corcoran Sunshine for the “Million Dollar Listing New York” team of Fredrik Eklund and John Gomes at Douglas Elliman.

The project has 191 units either closed or in contract, according to the developers.

Supermarket chain Morton Williams in December signed a lease for a new 29,400-square-foot grocery store at the base of the building, and last week it was reported that Touro College bought a 67,000-square-foot commercial condo for just under $70 million at the building, where it plans to open a dormitory.

As the residential sales market has slowed, condo developers are increasingly turning to inventory loans to finance unsold product, often taking out more expensive construction debt or preferred equity/mezzanine financing in their capital stacks.

In November, Steve Witkoff, Fisher Brothers and Howard Lorber’s New Valley landed a $650 million inventory loan and financing for their 800-foot-tall Tribeca tower at 111 Murray Street from the Blackstone Group.