Developers behind the conversion of a historic Upper East Side hotel into a luxury condominium got a major boost for their project.
Adellco secured a $95 million refinancing of its construction loan for The Wales at 1295 Madison Avenue in Carnegie Hill, Lantern Real Estate co-founder Tal Bar-or told The Real Deal. The $95 million also refinanced senior and mezzanine loans from Arbor Realty Trust.
Bar-or and partner David Strongwater were the mortgage brokers on the transaction, and G4 Capital Partners was the lender. Adellco president Matthew Adell and G4 co-partner Jason Behfarin signed for the respective parties.
Adellco purchased the century-old Hotel Wales on the corner of East 92nd Street and Madison Avenue for $56 million in 2018, 6sqft reported. The real estate development and management firm later filed plans to convert the 10-floor building into 21 luxury condominium residences and a top-floor penthouse across 53,500 square feet.
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The 87-key landmark hotel permanently shut its doors in 2020, the New York Post reported. Sales for the luxury residences began last December, with prices reportedly ranging from $3.85 million to more than $7.4 million.
Adellco received approval for its conversion project from the Landmarks Preservation Commission last spring. Move-ins are expected to begin early next year, according to Adellco.