Trinity Place Holdings’ Lower Manhattan condo tower extended its debt and hired a new sales team as the building struggles to sell units.
The developer inked a deal with its lenders to push back its senior and mezzanine loans’ maturity until 2025 with a further one-year extension option on the 90-unit tower at 77 Greenwich Street. It also extended the corporate loan until 2026, according to securities filings.
In exchange, Trinity gave up a five percent stake in the project to corporate lender Davidsen Kempner Capital Management. The move allows Davidsen Kempner to become the manager of an entity controlling the project, taking the driver’s seat for major decisions.
But, for now, the lender does not appear to want to make any changes. Davidsen Kempner has retained Trinity as the asset manager and is paying it a fee.
Trinity is now on to its fourth sales brokerage at the property after recently replacing Shaun Osher’s Core Real Estate with Shlomi Reuveni of Reuveni Development marketing and Christie’s International Real Estate Group.
Core took over sales from Serhant last summer, who rebranded the project with a French-inspired moniker, “Jolie.”
Trinity secured a $167 million inventory loan from Macquarie Capital in October 2021 after its senior and mezzanine loans fell into default because of slow sales and construction delays. The project’s amenities include an elementary school.
So far, only 40 out of 90 units have sold, according to Marketproof. The building has units ranging from one-bedrooms for $1.7 million and four-bedrooms for $5.7 million, with an average asking price per square foot of $1,805.
The tower launched sales in a difficult five-year period for the area’s condo market, in which the Financial District has suffered from a glut of inventory. In 2019, homes in Lower Manhattan took about nine months to sell, according to Redfin data, but have since improved to an average of just three months.
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Correction: An earlier version of this article incorrectly identified Macquarie Capital as the entity taking a larger stake in Trinity Place Holdings’ 77 Greenwich.