Related’s 15 Hudson Yards lands $108M condo inventory loan

Wells Fargo originated the financing for 102 unsold units

New York /
Apr.April 01, 2021 02:45 PM
Related's Stephen Ross and Jeff Blau (left) with 15 Hudson Yards (Getty, Hudson Yards)

Related’s Stephen Ross and Jeff Blau (left) with 15 Hudson Yards (Getty, Hudson Yards)

After a rough year for luxury condo sales in Manhattan, Related Companies and Oxford Properties Group sewed up a loan for unsold condos at 15 Hudson Yards earlier this week, records show.

The $107.5 million in financing, from Wells Fargo, is secured by 102 units at the luxury tower — 99 residential, two commercial and one storage. The agreement was first reported by PincusCo.

The 285-unit condo previously received an $850 million construction loan from the New York State Housing Finance Agency and London hedge fund, the Children’s Investment Fund. When a condo project’s sales do not meet expectations, developers often take out loans backed by unsold units to pay off construction loans that come due.

Sales at the luxury tower launched in September 2016 with Related looking to reap $1.74 billion. Unit prices ranged from $3.9 million to $32 million. Building amenities include a 75-foot indoor pool, spa and fitness center, screening room, golf simulator and a dining room big enough to accommodate more than 60 guests.

In January 2019 Related announced the condo was more than 60 percent sold. By the end of that year, StreetEasy records showed 54 percent of the units had been sold and the developer said another 6 percent were in contract, according to the New York Times.

A year later, it appears the building is just 65 percent sold. The condo inventory loan covers about 35 percent of the tower’s unsold residential units. Corcoran Sunshine Marketing Group has been handling sales at the project since 2016. The firm did not immediately respond to a request for comment, nor did Related.

The number of residential sales in Manhattan last year dropped dramatically after the pandemic began. But new-development condo sales began to accelerate in the fourth quarter of the year and contracts for new condos asking more than $4 million have been signed at elevated levels since the beginning of the year.





    Related Articles

    arrow_forward_ios
    (Image by Wolfgang & Hite via Dezeen)
    Hudson Yards megadevelopment inspires a new line of sex toys
    Hudson Yards megadevelopment inspires a new line of sex toys
    Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)
    Related is the latest developer to target the Rockaways
    Related is the latest developer to target the Rockaways
    The Observation Deck at Hudson Yards (Credit: Adam Pogoff)
    Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
    Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
    Levered and loaded: KKR looks to flex its real estate muscle
    Levered and loaded: KKR looks to flex its real estate muscle
    Levered and loaded: KKR looks to flex its real estate muscle
    Related's Stephen Ross and the Chelsea-Elliott Houses (Getty, Wikimedia)
    Related wades into NYCHA — and becomes a target
    Related wades into NYCHA — and becomes a target
    Lalezarian Properties CEO Kevin Lalezarian and 606 West 30th Street (Ismael Leyva Architects)
    Lalezarian lands $170M loan for resumed Hudson Yards tower
    Lalezarian lands $170M loan for resumed Hudson Yards tower
    Skyline Tower in Long Island City and 200 East 83rd Street (Hill West, Rockefeller Group)
    Manhattan logs busiest month for new development sales since April
    Manhattan logs busiest month for new development sales since April
    Tishman Speyer CEO Rob Speyer, Turner Construction CEO Peter Davoren and The Spiral at 66 Hudson Boulevard (Getty, Turner Construction, Tishman Speyer)
    Build it and we will come: Turner Construction moves HQ to Tishman Speyer’s Spiral
    Build it and we will come: Turner Construction moves HQ to Tishman Speyer’s Spiral
    arrow_forward_ios

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

    Loading...