MRR Secures $170M Loan for Billionaires’ Row Tower

reprints


MRR Development and Zahi Hagag closed on a $170 million construction loan Friday afternoon for a Billionaires’ Row development currently being built, Commercial Observer can first report. 

MRR, led by developer Rotem Rosen and billionaire Anand Mahindra, in partnership with fellow billionaire Hagag, purchased the property at 126 East 57th Street for $103 million in 2019, and then demolished the existing brownstone on site. In its place will rise a 28-story residential tower designed by ODA

SEE ALSO: CRE Holding Pattern Continues With Fed’s Sixth Straight Interest Rate Increase 

Construction on the site, which runs the width of a city block along Lexington Avenue, began this summer. When completed, it will include 145 condos spanning roughly 180,000 square feet. Recent renderings show a fractal tower, with asymmetric outcroppings that allow for multiple units to have outdoor access. It will also include a six-story atrium that doubles as a lobby.

The $170 million financing from Bank OZK was all senior debt, with no additional mezzanine financing, according to a source close to the deal.

Simon Ziff and Jason Krane of Ackman-Ziff brokered the deal for MRR. Fried Frank represented the legal side for the borrower, and King & Spalding did so for the lender.

Mahindra, president of Indian conglomerate Mahindra Group, and Rosen, the former CEO of Sapir Organization, formed MRR in 2017. 

Chava Gourarie can be reached at cgourarie@commercialobserver.com.