JDS, Largo land $91M construction loan for Chelsea condo development

Madison provides the last round of financing needed to complete the Fitzroy
By Konrad Putzier | February 22, 2018 04:45PM

From left: 514 West 24th Street, Josh Zegen, Michael Stern

Michael Stern’s JDS Development and its partner Largo Investments landed a $91 million loan from Madison Realty Capital to fund the final stage of construction at their Fitzroy condominium development in Chelsea.

The new loan replaces a $74.5 million financing package that Santander Bank and First Key Residential provided in 2015.

JDS and Largo are building a 10-story, 65,346-square foot condo on the site at 514 West 24th Street. The 14 apartments will average just under 3,000 square feet. Construction is almost complete and some of the units are under contract, according to the developers.

The partners bought the site for $34.8 million in July 2014, property records show. The Roman and Williams-designed building has a projected sellout of $163.95 million, according to an amended offering plan filed with the Attorney General’s office in October 2017.

JDS and Largo are also partners at the American Copper Buildings rental development at 626 First Avenue.

Josh Zegen’s Madison issued $1.05 billion in construction loans between October 2016 and September 2017, earning it the No. 4 spot in The Real Deal’s recent ranking of New York’s most active construction lenders. In July, the fund manager financed Ceruzzi Properties’ condo project at 138 East 50th Street with a $300 million loan.