Joel Kohn’s Jay Group secured $83 million in construction financing to advance its progress on one of the tallest residential buildings planned for Hamilton Heights.
Meridian Capital Group arranged the debt for 620 W 153rd Street, where the developer filed plans last year for a 28-story, 238-unit building in the Upper Manhattan neighborhood.
The Commercial Observer first reported the funding, which comes as a three-year floating-rate debt with a senior loan from Bank Hapoalim and a mezzanine loan from Be-Aviv, a New York City-based lender run by Israeli real estate scion Ben Harlev.
Plans filed in December 2020 with the Department of Buildings show the development will span about 250,000 square feet, including 12,000 square feet of community space, The Real Deal previously reported.
Eli and Isaac Chetrit own the site, which has changed hands several times in recent years. The developers closed on the site in May 2020 for about $29 million, and filed plans to demolish adjacent parking structures that same month.
The brothers bought the site from Anbau, who purchased it from Verizon in 2018 for $22.5 million. The developer was reported in February 2018 to be planning a condo, but the project never came to fruition.
The Chetrits initially planned to build a luxury residential project spanning 135,000 square feet. But in November 2020, plans for a condominium building at the site were canceled by architectural firm Peter F. Farinella, according to DOB records.
The Commercial Observer previously reported the Jay Group’s multifamily play in Downtown Brooklyn, where the developer paid about $40 million to acquire 101 Fleet Place from Leser Group and snagged a $130 million loan from G4 Capital Partners.
The loan included $22 million earmarked for the acquisition of the site and the remaining $108 million in the loan will be funneled toward the construction of a multifamily property. The Observer reported the project is expected to include more than 300 units across more than 300,000 square feet and construction is set to begin next year.
[CO] — Ellen Cranley
Orion Jones contributed reporting.