Lendlease, Victor Group Land $369M in Financing for NoMad Condo
Lauren Elkies Schram Feb. 27, 2017, 11:15 a.m.
Lendlease and Victor Group have nailed down a $369 million financing package for their 55-story tower condominium project in NoMad.
“It’s an interesting time to get financing for a condo project,” said Melissa Burch, the executive general manager at Lendlease. The developers looked to a “global group of financial firms to pull together the full financing of the project.”
The funds go toward the joint venture’s $470 million condo project at 281 Fifth Avenue at the corner of East 30th Street. Of $369 million total, $269 million comprises a three-year construction loan (with two one-year extension options) from three Singaporean based banks, led by United Overseas Bank Limited, and along with Oversea-Chinese Banking Corporation Limited and DBS Bank, according to Ran Korolik, executive vice president and a partner of Victor Group, who declined to cite more deal specifics. The debt carried a 57 percent loan-to-cost ratio. The other $100 million is an investment from Beijing Shokai Group for a preferred equity position in the project through its subsidiary, May Bao Limited.
Victor started assembling the site—a combination of land and air rights—two years ago, spending $174.1 million, Korolik said. Lendlease acquired an unspecified stake in the project in April 2015 and Burch said they are co-developers and co-managing members.
The 700-foot tall, 55-story Rafael Viñoly condo will span the sites of 277, 279 and 281 Fifth Avenue and will amass 250,000 square feet. There will be 130 one- to four-bedroom condominium units.
“What’s really exciting about the project, every unit is a corner apartment,” Burch said, “so it has exceptional views and light and a real sense of expanse.”
The interiors are being designed by Jeffrey Beers. On the first two floors of the base there will be a 10,000-square-foot retail podium, and then the building sets back.
The developers are currently constructing the superstructure. The first apartments will be delivered at the end 2018 and the full construction will be completed in 2019, Burch said.
The Wall Street Journal first reported news of the deal in its print edition.