Silverback Development lands $90M construction loan for Gramercy condo

Och-Ziff and Michael Dell’s MSD Partners provided financing
By Rich Bockmann | June 25, 2019 03:15PM

Silverback Development's Josh Schuster and 359 Second Avenue

Silverback Development’s Josh Schuster and 359 Second Avenue

Josh Schuster’s Silverback Development lined up a $90 million construction loan for its Gramercy Park condominium development.

Och-Ziff Capital Management Group and Michael Dell’s MSD Partners teamed up to provide the financing for the 13-story project at 359 Second Avenue, the developer told The Real Deal.

Schuster said that the development will aim to keep apartments priced below $3 million and noted it sits across the street from a city playground, meaning its access to light and air should be protected for the foreseeable future.

“The importance for us is speed-to-market and to take advantage of the forever light and air,” he said.

Adi Chugh and Matthew Shatz at Maverick Commercial Properties arranged the debt.

Schuster said demolition is already under way on the site, and he’ll be looking for approval from the state Attorney General’s office to start marketing condos sometime in the first half of next year.

The condo building, designed by architect Issac Stern, is planned to have either 55 or 53 units with a total sellout of roughly $150 million, Schuster said.

Schuster, the former DHA Capital principal who launched Silverback three years ago, teamed up with the property owner at 359 Second Avenue in 2017 to develop the project.

Earlier this year, Silverback teamed up with AEW Capital Management to buy an under-construction multifamily development project in Long Island City for $40 million.