Victor Group lands $30M condo inventory loan for the Getty

Paragon Outcomes and Axos Bank provided the loan

New York /
Feb.February 06, 2019 06:30 PM

Moshe Shuster and the Getty

Victor Group snagged a $30 million condo inventory loan for the remaining unsold units at the Getty building in West Chelsea.

Investment firm Paragon Outcomes Management and Axos Bank – formerly known as Bank of Internet – provided the loan, according to a Paragon statement Wednesday. The loan for the project at 501 West 24th Street closed in January.

To date, three of the seven units at Victor Group and Michael Shvo’s project have sold, Paragon said. As the new development condo market has struggled amid the market slowdown, developers who landed construction loans three or four years ago have been revising their finances in an effort to adapt. Increasingly, they’ve turned to condo inventory loans, which use unsold units as collateral and can replace more expensive mezzanine financing.

Last month, Tom Hill, the Blackstone Group billionaire, closed on a $29 million commercial condo at the Peter Marino-designed Getty. The unit, spanning the third and fourth floors, will house his renowned art collection.

The 12-story luxury building also snagged the priciest Downtown Manhattan sale with billionaire Robert Smith’s $59 million deal for the triplex last year. Following the sale, the developer decided to increase prices for the remaining apartments. The fifth-floor apartment, for example, was originally priced at $16 million and then increased to $19.5 million. And the seven-floor unit increased from $17.5 million to $21 million. The new asking prices brought the total project sellout of the residential portion to $138 million.

In April 2018, the Lehmann Maupin gallery paid $27 million, or about $4,400 per foot, for the gallery space on the building’s first and second floors.

The Getty is the second Victor Group project Paragon has financed. It previously provided a land acquisition and predevelopment loan for the 277 Fifth Avenue condo project.

A spokesperson for Victor Group declined to comment.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Nightingale’s Eli Schwartz and 111 Wall Street (Google Maps, Nightgale)
Nightingale, Wafra secure $500M loan package to revamp 111 Wall
Nightingale, Wafra secure $500M loan package to revamp 111 Wall
Renderings of Greenpoint Landing in Greenpoint, 141 Willoughby Street in Downtown Brooklyn and 45-57 Davis Street in Long Island City (Photos via OMA, SLCE Architects and J Frankl Architects)
These were the top outer-borough loans in May
These were the top outer-borough loans in May
1133 Sixth Avenue, 114 West 47th Street, 537 Greenwich Street and 55 Broadway (Tdorante10/Wikimedia, Durst Organization, Easter Consolidated Google Maps)
These were the largest Manhattan real estate loans in May
These were the largest Manhattan real estate loans in May
Acting Katara CEO Andrew Humphries and 355 West 16th Street (Google Maps, AHIC)
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Blooma founder Shayne Skaff (LinkedIn, iStock)
CRE fintech startup Blooma nabs $15M in funding
CRE fintech startup Blooma nabs $15M in funding
Blackstone’s Jon Gray and Skyview Mall at 40-24 College Point Blvd (Getty, Shops at Skyview)
Blackstone lands $285M CMBS refi for Flushing’s Skyview mall
Blackstone lands $285M CMBS refi for Flushing’s Skyview mall
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...