The Real Deal New York

Torkian ups debt on new rental development in Midtown

City recently sued Torkian over allegedly marketing short-term rentals
By Mary Diduch | January 22, 2019 05:00PM

Hersel Torkian of Torkian Group and Solari at 42 West 33rd Street (Credit: CityRealty)

The Torkian Group just snagged a refinancing of the Solari, its newly constructed luxury Midtown rental tower.

AIG provided the firm with $135 million to refinance the 41-story, 223-unit tower at 42 West 33rd Street, according to records filed with the city on Tuesday.

The financing package includes a $30 million gap mortgage and consolidates a $105 million construction loan Bank Leumi provided in 2015. The debt is now spread among three of AIG’s subsidiaries.

Torkian bought the property, which sits between Fifth Avenue and Broadway, for $30 million in 2007, according to public records. Monthly rents at the building currently range from $3,918 for a studio to $14,995 for a three-bedroom, StreetEasy shows. Forty-five of the units are designated as affordable.

The developer did not immediately return a request for comment. AIG declined to comment.

The city, in its effort to stop illegal short-term rentals, earlier this month filed a complaint against Torkian for allegedly marketing and leasing such units despite previous official warnings. The city said it found over 1,000 listings at Torkian’s buildings at 110 Greenwich Street, 311 West 50th Street and 488 Seventh Avenue.

AIG recently was part of a group of lenders that provided $200.8 million to Simon Baron Development to buy its partner’s stake in a Long Island City apartment complex.