BridgeCity Supplies $87M Construction Loan for Murray Hill Apartments
By Andrew Coen August 19, 2024 12:41 pm
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A joint venture between Gilar Realty and Ranco Capital has secured $87 million of construction financing to build a multifamily asset in Manhattan’s Murray Hill neighborhood, Commercial Observer has learned.
BridgeCity Capital provided the floating rate loan, which has a term of up to 36 months, on the sponsorship’s planned 22-story apartment building at 540 Third Avenue. The transaction closed late on Friday.
“The deal was attractive due to its exceptional location and the strength of its sponsorship team, which has a proven track record of success in past projects that BridgeCity has financed of similar scale,” Louis Lebovits, CEO of BridgeCity, said in a statement. “This combination of factors aligns with our investment strategy and risk tolerance, making it an attractive opportunity for us to support the development of this site.”
Lebovits noted that the owners of 540 Third Avenue are also behind another rental apartment project at 416 Metropolitan Avenue in Williamsburg, Brooklyn that BridgeCity provided a $72.5 million construction loan on last year. BridgeCity also supplied a $55 million bridge loan last year for the sponsorship’s 72-unit residential development at 262 9th Street in Park Slope in Brooklyn.
The 540 Third Avenue project will consist of 160 apartments and 3,747 square feet of ground-floor retail space, according to New York YIMBY. Demolition of a previous five-story building wrapped up in the winter, New York YIMBY reported at the time.
Officials at Gilar Realty and Ranco Capital did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
