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Adellco scores $95M refi for Madison Avenue condo conversion

Developer plans to turn historic Carnegie Hill hotel into luxury residences

1295 Madison Avenue, Lantern Real Estate’s Tal Bar-or, Adellco’s Matthew Adell and G4’s Jason Behfarin (iStock, The Wales, Lantern Real Estate, American Friends of Blérancourt, G4, Illustration by Kevin Cifuentes for The Real Deal)
1295 Madison Avenue, Lantern Real Estate’s Tal Bar-or, Adellco’s Matthew Adell and G4’s Jason Behfarin (iStock, The Wales, Lantern Real Estate, American Friends of Blérancourt, G4, Illustration by Kevin Cifuentes for The Real Deal)

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.

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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.

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Commercial Real EstateCondo ConversionsMadison AvenueReal Estate LoansRefinancing