Urban Standard Capital Provides $52M Inventory Loan for Manhattan Condos
KD Sagamore (KDS) has secured a $52 million inventory loan to refinance its luxury condominium project on Manhattan’s Lower East Side, Commercial Observer can first report.
Urban Standard Capital (USC) supplied the debt package for KDS’ 199 Chrystie Street development, which finished construction in late 2021. The financing includes both senior and mezzanine components with flexible release prices and a floating rate that decreases over the term of the loan. The loan provides KDS with additional time to sell the condo units and maximize proceeds.
“This loan reflects USC’s ability to recognize, appreciate and give value to luxury real estate,” said Seth Weissman, the founder and president of USC. “There are significant distinctions in the level of product that need to be considered.”
Weissman noted that most of 199 Chrystie’s units have double-height ceilings, making the cubic square footage and volume of the apartments bigger. He added that the building’s design, with detailed millwork, stonework and metal work, brings additional value not factored in by other lenders who only provide loans based on a flat per-square-foot threshold.
“We have different buckets of capital so we can price the same deal at different levels,” Weissman said. “If a borrower wants a 65 percent loan-to-value loan, we can provide options at higher proceed levels.”
The property comprises 14 condo units designed by Thomas Juul-Hansen and features two duplex penthouses with large terraces. The 14-story, 39,188-square-foot building has amenities that include a fitness center, private storage and package rooms.
Officials for Manhattan-based KDS, a real estate development and investment firm run by Charles Dubroff, did not immediately return a request for comment.
USC manages $500 million of real estate equity and debt investments across its platforms. It has a busy year on tap with projections to deploy $300 million in New York City, $100 million in the Hamptons and $100 million in Florida by the end of 2022.
Andrew Coen can be reached at firstname.lastname@example.org.