KPG Funds Bags $50 Million Construction Loan From Sabal, GDSNY, Maxim Capital
Not many boutique offices in SoHo are scoring $50 million construction loans in this market, but 40 Crosby Street just did.
The 70,000-square-foot, five-story KPG Funds-developed building dubbed “The Crosby,” which is aiming to open in the first quarter of 2024, secured financing from Sabal Investment Holdings and GDS Brightstar, the lending arm of GDSNY, Commercial Observer can first report.
Maxim Capital Group was also a lender in the deal, according to a second source.
“By never wavering in our belief in the resilience of the greatest city in the world, we are being rewarded with the ability to construct bespoke office space in a gorgeous cast-iron building in a premier location,” KPG co-founder and chief investment office Rod Kritsberg said in a prepared statement. “KPG’s white-glove management, exceptional amenities and top co-tenancy will further enhance the cachet of 40 Crosby.”
Indeed, the project boasts amenities such as 18-foot ceilings, a new building core and HVAC system (orange haze from Canada be damned!), and full-floor offices ranging from 11,201 to 11,592 square feet. Asking prices are expected to be around $120 per square foot.
“Bespoke office is on fire and we can’t build fast enough to accommodate the demand for our signature KPG office product,” said KPG’s co-founder and CEO Greg Kraut in a statement. “The demand for office space post-COVID is being redefined in 2023 by landlords who provide an ultra-high end experience for their tenants in highly desirable locations.”
The deal was brokered by Newmark’s Dustin Stolly, Jordan Roeschlaub and Nick Scribani.
“We continue to identify high-quality assets and real estate opportunities in New York for our partners and investors,” said GDSNY’s partner and co-founder Alan Rudikoff in a statement. “40 Crosby is an iconic Soho cast-iron building in a triple-A location and we are proud to be a part of its continued success.”
The property also includes frontage along Broadway for an 18,000-square-foot retail space.
Max Gross can be reached at mgross@commercialobserver.com.
