Urban Capital, Prosper Property Secure $32M to Convert Historic Tribeca Building

Urban Capital Group and Prosper Property Group have secured a $32 million acquisition and construction loan from Kriss Capital to convert a historic Tribeca textile warehouse into luxury condos.

Urban Capital and Prosper completed their purchase of the property on the corner of Church and Walker streets — which spans 32-34 Walker Street, also known as 305-309 Church Street — for a total of roughly $17 million this week, records show.

In February 2024, Prosper and Urban Capital bought the neighboring, two-story retail building at 305-307 Church Street, which used to house Tribeca’s Belle Reve bar, from Hop Yee, an entity affiliated with the Paramount/Boltex Textile Company, which had owned the buildings since 1981, for $5.3 million, according to records.

Then this week, Prosper and Urban Capital paid $11.6 million to Eltibe Realty for 34 Walker Street, records show.

Working with partners GRA Equities and PZ Realty Investments, the developers plan to build a “modern, amenitized living experience” at the assemblage featuring five luxury loft residences and ground-floor retail, according to the release. The seven-story project will offer three- and four-bedroom full-floor apartments spanning roughly 3,500 square feet.

“In a tough lending environment, we secured a flexible, timely financing package that ensured certainty of execution — allowing the developers to bring their transformative vision for Tribeca to life,” New Development Capital’s Andrew Iadeluca, who arranged the financing, said in a statement to Commercial Observer.

Douglas Elliman’s Monica Luque handled the sale.

Urban Capital and Prosper’s plans for the 30,000-square-foot project were approved by the Landmarks Preservation Commission (LPC) and include preserving the historic cast-iron textile warehouse at 34 Walker Street, while adding an “elegant new structure” at 32 Walker Street, the buyers said.

“We studied the neighborhood and collaborated closely with our architectural team, our historic consultant Higgins Quasebarth, and the Landmarks staff to craft a design and asset that embodies modern Manhattan living while honoring Tribeca’s rich history,” Cedric Abboud, principal at Urban Capital, said in a statement. “Securing an LPC approval with strong support by the Community Board is a testament to our team’s dedication to thoughtful, contextual development and embracing its surroundings. We are now on the ground and commencing work immediately.”

The building’s existing historic facade will also feature “preserved cast-iron elements alongside a new natural limestone facade, ensuring an elegant blend of heritage and contemporary design,” Urban Capital and Prosper said.

“Addressing the design and engineering challenges of this site has resulted in a truly exceptional residential offering that enhances Tribeca’s iconic streetscape,” Prosper Chairman and CEO Damien Smith said in a statement.

Construction on the project is expected to be completed during the second quarter of 2026, the developers said. SERHANT’s Peter Zaitzeff is handling sales and marketing for the property.

The project will take over the home of the Paramount/Boltex Textile company, run by brothers Alan Katz and Ron Katz for 50 years and considered the last of the Tribeca textile wholesalers until they finally decided to let the building go in 2022, the Tribeca Trib reported.

But the developers’ project was met with some contention in the neighborhood last March, when the lively Belle Reve bar was forced to close to make way for the conversion.

“We are heartbroken to announce the closing of our Belle Reve,” the bar said in an Instagram post at the time. “We tried to stall until the new owners of the corner had all their needed and necessary approvals, however a lock and lawsuit would be more than we could afford.”

Isabelle Durso can be reached at idurso@commercialobserver.com.