Crestline Direct Finance, Summit Capital Funding Lend $16M on Lower East Side Condo Building
By Andrew Coen August 7, 2023 4:56 pm
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A partnership between developer Sheryl Hempel and Prosper Property Group has landed a $16 million debt package to complete a planned condominium development on Manhattan’s Lower East Side, Commercial Observer has learned.
Crestline Direct Finance and Summit Capital Funding supplied the two-year floating-rate loan for the sponsorship’s six-story, 12-unit condo project at 330 Grand Street.
The debt package will refinance an existing $12.35 million construction loan provided by Parkview Financial in late 2020, and also fund the balance of its development and carry costs.
Colliers (CIGI) arranged the transaction with a team led by Dylan Kane and Zach Redding — both managing directors in the brokerage’s New York capital markets group. Kane said that the development has faced delays stemming largely from the COVID-19 pandemic, which forced the project’s sponsors to pivot from modular to traditional construction methods.
“We have a building that they took up to the full six stories, plus the rooftop. This loan will refinance the previous loan and then also provide capital to finish the enclosures and the interiors,” Kane said. “This gives them the capital they need to finish the project.”
The 330 Grand Street project will feature 10,735 of sellable square feet, more than 2,000 square feet of private outdoor space and a resident rooftop lounge. The Kurv Architecture-designed property’s amenities will include a fitness center, storage units, bike storage and a virtual doorman.
Hempel acquired the 330 Grand Street property in 2017 and recently partnered with Prosper Property Group. The company is known as Prosper on the ownership side of the business and also has a construction contracting division called First Standard Construction.
“What was great about this deal was the team at First Standard had just completed a similar-sized rental building at 282 Grand Street, just down the block,” Kane said. “They have a strong track record.”
The 330 Grand project is slated for completion in the first quarter of 2024. Residential sales will be led by SERHANT beginning in early 2024.
“As with any deal happening right now, the hurdles we came across were easily navigated because of the team’s experience and commitment to the deal,” Eddie Bender, principal and chief financial officer at Prosper Property Group, said in a statement.
Hempel did not immediately return a request for comment. Crestline Direct Finance and Summit Capital Funding declined to comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
