Jason Lee’s Six Sigma has landed a $37 million construction loan from Madison Realty Capital for the completion of a luxury condominium project at 435 West 19th Street in Chelsea, Commercial Observer can first report.
Meridian Capital Group’s Aggelos Sklavenitis negotiated the two-year loan on behalf of the borrower. The debt carries a Libor-based floating rate with interest-only payments for the full term and two six-month extension options.
The new funds are being used to create six residences at the building between Ninth and Tenth Avenues. There will be two multilevel units and four full-floor units totaling roughly 33,000 square feet. Individual units will range from 3,800 to 5,200 square feet, and each unit will have its own private garage and swimming pool, according to Six Sigma’s website. Pei Partnership Architects is designing the condo residence, which is slated for completion in the next 12 to 18 months.
The mortgage from MRC also replaces a $29 million acquisition and construction loan that Sklavenitis arranged for the property in September 2014. Knighthead Funding originated the 30-month, interest-only financing, CO reported at the time.
“The current financing market can be challenging for borrowers, and we believe that this dynamic creates opportunities to make loans on quality assets and deliver the funding they used to get across the finish line,” Joshua Zegen, the co-founder and managing principal of MRC, said through a spokesman.
Six Sigma purchased the five-story property for $21 million in August 2014, city records indicate, and has since been working on the reconversion. Former owner City Stage, the now-shuttered sound stage manufacturer, had occupied the building since it acquired it in 1999.
Lee, of Six Sigma, did not return a call for comment.