3650 REIT Provides $50M Mid-Construction Recap for 1 Park Row
The 24-story mixed-use luxury condo in downtown Manhattan has been plagued by delays
By Brian Pascus June 12, 2024 12:29 pm
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The team at 3650 REIT is expanding its footprint into New York City.
The lender has provided Circle F Capital with $50 million in financing to complete the construction and upgrades to 1 Park Row, a 24-story mixed-use luxury condominium directly across from City Hall in downtown Manhattan, Commercial Observer has learned.
The financing is expected to hasten the completion of a 62-unit condo, whose construction has been impacted by supply chain delays over the previous few years.
Circle F even sued its former construction manager, MJM Associates Construction, in 2023, alleging the subcontractor’s failures led to “colossal” issues and delays with the project, The Real Deal previously reported. The New York-based sponsor had received a $90 million construction loan from Parkview Financial in 2021, per New York YIMBY.
Jonathan Roth, 3650 REIT co-founder and managing partner, said that his firm expects the mid-construction capital infusion to enhance planned amenities for the building and buttress Lower Manhattan’s already strong residential market.
“3650’s unique ability to fill gaps in the capital stack for well-located projects that are already under construction is a core tenet of our advantaged position in today’s market,” said Roth in a statement. “1 Park Row is an example of a mid-stream project that can benefit from additional enhancements.”
David Feldman, managing member of Circle F Capital, a family-owned real estate firm, said in a statement that his firm appreciated 3650 REIT’s ability to provide mid-construction recapitalization amid a challenging marketplace.
“The 3650 team was able to navigate a complex structure in a timely manner that allowed us to keep the project on track, uninterrupted, while providing the capital we sought to make these improvements midstream,” said Feldman.
Located near both 1 World Trade Center and the Brooklyn Bridge, 1 Park Row will join 8 Spruce — also known as the Gehry Building — and Harry Macklowe’s 1 Wall Street as new high-rise developments providing luxurious living in Lower Manhattan. The new glass-encased tower will boast 62 residential units averaging 1,028 square feet, as well as up to 8,000 square feet of ground-floor and second-floor retail space.
The commercial and residential lobbies will be separated. Building amenities for residents are to include a fitness center, a garden terrace, and a lounge with outdoor views.
It’s unclear whether the building will be completed in 2024.
Brian Pascus can be reached at bpascus@commercialobserver.com
