$28,286,710 in debt and equity financing for the acquisition and development of large, luxury condominium units with indoor parking on Leonard Street in TriBeCa
Winter & Company has closed $28,286,710 in debt and equity financing in connection with a multi-phase transaction to acquire, design and build a six-unit, amenity-rich, luxury condominium development on a quiet street between West Broadway and Hudson Street in TriBeCa, NYC.
Initially Winter & Company arranged a $6,000,000 bridge loan to facilitate the $10,000,000 site acquisition. The acquisition/bridge loan carried a rate of 4.5% and a term of 24 months, interest-only. Then, during the time that the project was being designed and presented for approvals to the D.O.B. (the NYC Dept. of Buildings) and the LPC (the Landmarks Preservation Commission), Winter & Company sourced a Joint Venture Equity partner, adequately capitalizing the project and allowing the developer to recover the majority of his original equity contribution.
The $20,000,000 construction loan carries a rate of 4.5% and a term of 24 months. As is typical in today’s development deals, the construction loan equates to a loan-to-cost of approximately 63% and is personally guaranteed by a developer with strong net worth, liquidity and a track record of relevant experience of building, and successfully selling luxury property in TriBeCa, NYC’s priciest zip code.
The joint venture equity partner sourced by Winter & Company made an initial equity contribution to the Venture of $8,286,710 and adds bandwidth to the project’s sponsorship both in terms of financial strength and experience. While this project aims at the ultra-high end, $2,500+ per square foot market, there is far more demand than supply in this rarified market segment, and the developer has proven that he knows how to deliver the correct design, finishes and amenities needed to complete construction and successfully sell at that level.
Winter & Company is a Manhattan-based, commercial mortgage advisory firm that specializes in arranging development and construction financing, financing for multifamily and mixed-use properties, and arranging cooperative underlying mortgages. Its affiliate, W Financial Fund, LP is a direct private bridge lender providing short-term, special situation financing primarily for NYC multifamily and mixed-use properties.