Silverstein’s lending biz could get a boost from the weak luxury condo market

Company hopes to double its business to more than $1B

TRD New York /
Nov.November 27, 2019 01:00 PM
Larry Silverstein (Credit: Getty Images, iStock)

Larry Silverstein (Credit: Getty Images, iStock)

Silverstein Properties is looking to double its lending business next year to more than $1 billion.

The firm is focusing on inventory loans in the luxury condo market at neighborhoods such as Tribeca, Gramercy and Midtown East, according to Bloomberg. The firm is in negotiations for roughly $700 million worth of such loans, which are generally used as temporary lifelines for developers looking to pay off construction debt without lowering prices while dealing with slow sales. It can let them remove equity from projects earlier as well.

Luxury developers in New York are now facing strong loan repayment projections in a market that is slowing down.

Silverstein formed its lending unit last fall and debuted with $240 million of mezzanine financing for JDS Development Group’s project at 9 Dekalb Avenue in Brooklyn. It has completed about $500 million in financing so far.

“Our goal is not to lend to projects that fail: We’re in a position where if a project has a problem, we believe that we could execute the business plan and we could finish the construction,” Silverstein president Michael May told Bloomberg. “We think that there’s still demand for units that are priced well, but in many cases, the owners of these projects have not adjusted their expectations to where the price would sell in the market yet.” [Bloomberg] — Eddie Small

Related Articles

Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)

For 15 years, David Koch lived at the world’s “richest building”

From left: Colgate chairman Ian Cook and 1115 Fifth Avenue and 912 Fifth Avenue (Credit: Cuny, StreetEasy)

He sold enough toothpaste to buy this tony Carnegie Hill pad

Vornado’s Steve Roth and 220 Central Park South (Credit: Getty Images)

Another villa unit at 220 Central Park South sells for $47M

220 Central Park South and Vornado chairman Steven Roth (Credit: Google Maps and Getty Images)

Another $60M condo closes at 220 Central Park South

255 West 11th Street with Liv Tyler and 49 East 67th Street  with Thomas and Ann Unterberg (Credit: Getty Images and Google Maps)

Here’s what sold in NYC’s luxury home market last week

110 Central Park South and Aleksandra Melnichenko (Credit: Google Maps and Getty Images)

Who’s buying what? Here are our top luxe resi sales

Lee Radziwill and her home at 160 East 72nd Street (Credit: Getty Images, Brown Harris Stevens)

Longtime home of Lee Radziwill, sister to Jackie O., sells for $4M

993 Fifth Avenue and Gilbert Harrison (Credit: Google Maps and GLC)

Retail exec sells Fifth Avenue co-op to Chanel heir for $19M