After cobbling together the necessary lots, Joseph Chetrit landed the financing needed to construct a luxury condo building in the Upper East Side.
G4 Capital Partners provided a $235 million construction loan to the Chetrit Group for its project at 260 East 72nd Street in Manhattan, the Commercial Observer reported. The development site spans multiple parcels in the neighborhood.
Two years ago, G4 provided a $116.5 million bridge-to-construction loan for the site, collateralized by both the development site and Chetrit’s luxury condo building at 49 Chambers Street in Tribeca.
Chetrit is planning a 21-story, 150,000-square-foot, 54-unit luxury condo building at the corner of East 72nd Street and Second Avenue. The lot is close to the 72nd Street subway station, added in the first phase of the subway’s extension along Second Avenue. There will be 5,700 square feet of retail space in the building.
The developer is also looking to build a small apartment building next door, which will have four affordable housing units.
Galaxy Capital’s Henry Bodek negotiated the debt on Chetrit’s behalf.
Chetrit spent years piecing together the parcels for the development on the Second Avenue corner. The most notable move came when Chetrit purchased a lot on the corner from SL Green in 2015 for $47.3 million.
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Chetrit plans Upper East Side condo development
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Struggling with $481M loan, Chetrit looks to sell national portfolio
The Church of St. John the Martyr at 252 East 72nd Street was razed in April 2020. Patch reported last year that much of the remainder of the block would soon be torn down to make way for Chetrit’s project.
Chetrit could not be reached for comment by the Observer.
While looking to add to its condo holdings, Chetrit has been looking to sell a national portfolio of rental buildings after dealing with weak revenue streams and higher financing costs, putting Chetrit in danger of a $481 million default.
— Holden Walter-Warner