Chetrit and Clipper Land $345M Global Debt Deal for Gramercy Square Condos
New York-based Chetrit Group and Clipper Equity took a $280 million senior loan and $65.5 million in mezzanine debt for their condominium conversion project in Manhattan’s Gramercy Park, Commercial Observer has learned.
Natixis Real Estate Capital led the senior debt deal, which closed today, according to a person with knowledge of the deal. Malaysia-based Maybank, Bank of China (BACHF), Investors Bank and TD Bank also took part in the loan, while Apollo Commercial Real Estate Finance provided the mezzanine debt. The three-year senior loan carries two one-year extension options, the person in the know told CO.
Meridian Capital Group Senior Managing Director Ronnie Levine and Managing Director Steven Adler negotiated the debt deal. A spokesman for Meridian declined to comment.
The borrowers purchased the former Cabrini Medical Center at 224 to 228 East 20th Street and 209 to 225 East 19th Street in May of 2013 for $152 million from S.K.I. Realty, an affiliate of Memorial Sloan Kettering Cancer Center.
Once completed, the development, known as Gramercy Square, will house 223 luxury condos throughout four buildings connected by a private garden and wellness pavilion. One of the buildings is being constructed from the ground up, while the other three are being redeveloped.
Memorial Sloan-Kettering bid on the five buildings that comprised Cabrini Medical Center at an auction in January of 2010 and closed the $83.1 million sale in October that same year, public records show.
Cabrini Medical Center closed in 2008 and filed for Chapter 11 bankruptcy in 2009, according to published reports.
A spokeswoman for Chetrit Group declined to comment, while a spokeswoman for Natixis Real Estate Capital could not immediately comment. Representatives for Clipper Equity could not be reached by press time.
—Additional reporting by Danielle Balbi