Chetrit Buys LES Site With $70M Madison Realty Capital Loan

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The Chetrit Group has sealed $70 million of acquisition financing for a planned mixed-use multifamily development on Manhattan’s Lower East Side, Commercial Observer has learned.

Madison Realty Capital provided the loan on 260 South Street, which The Chetrit Group just acquired from previous owners L+M Development Partners and CIM Group for $78 million. The deal closed Friday.  

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Galaxy Capital SolutionsHenry Bodek arranged the financing.

“260 South Street will provide much-needed housing in Two Bridges, a highly desirable area of Manhattan where there are significant barriers to entry,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said in a statement. “The East River waterfront is poised for growth and we are excited to play a role in the development of new housing in the submarket” 

Manhattan-based Chetrit is planning a 1,300-unit residential complex with a 64-story and 70-story tower at the site, sources said. L+M and CIM previously targeted a 1,400-unit project at the site with roughly 360 affordable homes. 

In January, Chetrit refinanced its Upper East Side assemblage with a $117 million loan from G4 Capital Partners, in a transaction also arranged by Bodek. 

Officials for Galaxy Capital weren’t immediately available for comment. Officials at Chetrit Group did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com