Chetrit lands $90M inventory loans for Tribeca condo conversion

Loan proceeds were used to pay off existing debt

Joseph Chetrit and 49 Chambers (Getty, 49 Chambers)
Joseph Chetrit and 49 Chambers (Getty, 49 Chambers)

 

Chetrit Group’s luxury Tribeca condo project recently received $90.75 million in inventory loans.

Axos Bank provided a $49.25 million senior mortgage for 49 Chambers Street. Silverstein Capital Partners, the lending arm of developer Silverstein Properties, issued a $41.5 million mezzanine loan for 51 unsold units in the 97-unit condo development, sources familiar with the deal told The Real Deal. Both loans have a four-year term.

The proceeds from the loan were used to pay off part of the property’s existing loans, which were issued by SL Green Realty in early 2019 and later sold to Silverstein, sources said.

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Built in 1912, the 15-story Beaux Arts building was once the Emigrant Industrial Savings Bank. Chetrit bought the Beaux-Arts building from the city in 2013 for $89 million, and began converting it into condos in 2016, with a projected sellout of $334 million.

Sales for its condos launched in 2017, but have struggled amid the broader luxury market downturn. In November 2018, The Real Deal reported that the developer was offering buyers’ agents 50 percent of their commission at the contract signing.

About two years ago, SL Green provided the developer with a $204 million loan on the property to retire a $194 million construction financing package, which was issued by SL Green and Acore Capital in 2016, according to Commercial Observer.

Chetrit and Axos Bank did not respond to requests for comment for the article. Silverstein declined to comment.