Ian Bruce Eichner’s Continuum Company landed a $205 million construction loan for its condo project at a former Murray Hill church site at 40 East 35th Street.
New York-based private lender Kriss Capital and Israeli firm Klirmark Capital provided the $180 million senior loan for the planned 137-unit building at 26 East 35th Street, according to a press release. Real estate investment firm Corigin issued the $25 million mezzanine loan. The loan term is 30 months.
The 173,000-square-foot building — at the intersection of NoMad, Midtown South and Murray Hill — is expected to be completed by early 2027. The 18-story project will include a below-grade parking garage and ground-floor medical offices, Eichner said.
Continuum had initially planned to design somewhat larger units for people who work from home, but those plans changed as more workers returned to the office, Eichner said. The condo apartments will be an average of 1,200 square feet.
“The unit sizes are smaller because people are not working from home and this is a very centrally located property,” he said, noting its location near two hospitals, the Queens-Midtown Tunnel and Grand Central Terminal.
The cash-strapped Community Church was facing bankruptcy when it agreed to sell its Murray Hill home to Eichner in 2022. The deal for the portfolio, which includes the sanctuary at 40 East 35th Street and four adjacent townhomes, was structured as a $69.5 million ground lease that would later convert to a sale.
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Eichner said the sale closed along with the loan, which was arranged by a team including Max Hulsh and Max Herzog of IPA Capital Markets, a division of Marcus & Millichap. A Cole Schotz team including Matthew Schneid and Emanuel Tsourounis II represented Continuum.
Part of the church’s development site included a townhouse occupied by rent-stabilized tenants and a men’s homeless shelter. To clear the building and make the development possible, the church — already low on funds — shelled out $6 million to buy another townhouse nearby, where it was able to relocate the renters and the shelter.