Chetrit Group sells 1231 Third Avenue
Joe Chetrit refinances 72nd Street assemblage
In an active end to the year, Chetrit Group has sold 41,000-square-foot, mixed-use building at 1231 Third Avenue to Premier Equities for $43.25 million and refinanced the assemblage next to it.
Joe Chetrit’s firm paid $144 million in 2018 for the parcel and adjacent properties, which are all on the block bounded by East 71st and East 72nd streets and Second and Third avenues. The assemblage refi comes in the form of a $116.5 million loan from G4 Capital Partners. Commercial Observer first reported the deals.
In the move, G4 consolidated $65 million in senior debt on the assemblage and a $15 million gap loan for a total of $80 million in senior financing.
Sources familiar with the project told the Commercial Observer that Chetrit’s plan is to build a condominium at the Upper East Side site.
G4’s loan is collateralized both by the development site — 252-254, 257, 259 and 260 East 72nd Street — along the luxury condominium at 49 Chambers Street. The diversity and locations of the properties lower the risk of the loan.
“This financing was particularly attractive to us as it involves assets in different submarkets, and is collateralized both by completed luxury condominium units in Tribeca and a prime Upper East Side development site,” Robyn Sorid, co-managing partner at G4 Capital, told CO.
Chetrit Group is a repeat customer of G4. In December 2020, Chetrit, Clipper Equity and Read Property Group borrowed $207.5 million from the lender for the Gramercy Square condo project at 230 East 20th Street. In July 2021 a $40 million G4 construction loan was issued to a residential project at 88 153rd Street in Jamaica, Queens.
The Chetrit Group has remained active throughout the pandemic. Most recently the firm entered into a contract to pay around $100 million for the site at 265 South Street, where CIM and L+M filed plans in September for a two-tower building with more than 1,300 apartments.