Developers Second Development Services and Richport Group have refinanced their $28 million acquisition and construction loan on 22 Bond Street from Starwood Capital Group with new debt from Glacier Global Partners, Commercial Observer has learned.
“It was a better deal,” Gregory Atkins, the project executive at Second Development Services, told CO of the May 11 deal. The developers had initially borrowed $28 million from Starwood on Jan. 7, 2014, Mr. Atkins said.
The two firms are developing a six-unit condominium at the site, also known as 25 Great Jones Street since it extends through the block. The building is undergoing a partial demolition with BKSK Architects as the exterior designer and TKA Studio as the architect of record.
“We are actively finalizing the design while we complete the partial demolition,” Mr. Atkins said. Demolition is required to remove a structure on the Bond Street side as well as a partial demolition on the top of the existing structure, as CO previously reported.
The $52 million project is behind schedule as Mr. Atkins told CO in April 2014 that he hoped construction would be complete within a year. But, Mr. Atkins assured CO yesterday that: “Everything is going as planned” and “There is no hold up. It’s just a laborious process.”
The building at 22 Bond Street is undergoing a “complicated demolition,” Mr. Atkins said because they are retaining a lot of the structure rather than simply tearing it down.
The site, which has active demolition permits through the city’s Department of Buildings, was issued five Environmental Control Board, or ECB, violations, by the DOB, four of which are open. Violations include failure to provide weather proofing to an adjoining property and demolition work not conforming to approved construction documents. They carry penalties totaling $21,000, DOB records indicate.
“These are from the subcontractors working onsite,” Mr. Atkins explained. “They are usually resolved by the work getting done, such as removing the old hoist that is on site. The subs are all responding and working to resolve them.”
Yaniv Blumenfeld, the founder and managing member of Glacier Global Partners, didn’t immediately respond to requests for comment. Starwood didn’t respond by publication time.