Oleg Pavlov’s Quadrum Global has secured a second multi-millon dollar construction loan in as many days as the company embarks on its latest high-profile development project.
Quadrum, in partnership with Oxford Capital Group, secured a $170 million loan to facilitate the construction of Essex on the Park, a new 56-story, 479-unit luxury apartment building on Chicago’s South Michigan Avenue.
Jordan Ray, Ari Hirt, Steven Buchwald and Jamie Matheny of Mission Capital Advisors advised ownership and ran point in sourcing the financing from a global investment bank.
“It’s extremely challenging for developers to secure non-recourse construction financing in the current lending environment, particularly for transactions of this size, but we had the privilege of working on a very well-conceived project with marquee sponsorship and a fantastic location,” Ray said. “This is a complex, large-scale hotel and apartment project in a highly-competitive market. Despite the size and complexity, we were able to generate interest from multiple lenders who were willing to provide full-stack financing on a non-recourse basis.”
Last week, a partnership of Quadrum Global and Simon Baron Development secured a $150 million loan for the construction of a luxury residential tower at 29-26 Northern Boulevard in Long Island City, Queens.
AIG is providing the financing for that project, which has already commenced construction and is expected to open in early 2018. The 42-story tower will feature 467 apartments and extensive state-of-the-art amenity space, including an indoor swimming pool and fitness center.
Ayush Kapahi of HKS Capital Partners sourced the financing on behalf of Quadrum and Simon Baron.
“Long Island City has quickly become one of the most desirable places to live in the New York Metro Area,” said Oleg Pavlov, Quadrum’s founder and chief executive officer.
“Our partnership with Simon Baron has brought to market some of the most successful residential and hotel developments in New York City, and this financing will allow us to deliver another outstanding project.”
Matthew Baron, president of Simon Baron Development, added: “With our partner Quadrum Global, we are building a premier building in one of the great emerging neighborhoods in New York City. We’re excited to be a large part of the growth here in LIC.”
The project is the latest joint venture for Quadrum and Simon Baron, which has partnered to develop a number of residential buildings and a hotel, including The Chamberlain, 393 West End Avenue, and Arlo NoMad in Manhattan, and 45-40 Vernon Boulevard in Queens.
In Chicago, Oxford and Quadrum are building a 479-unit luxury apartment building at 808 South Michigan Avenue. As part of the project, the adjacent Essex Inn at 800 South Michigan Avenue, a historic, 254-room independent hotel, will be expanded to 271 rooms, re-positioned and upgraded into the Hotel Essex, a luxury lifestyle hotel, starting in late 2018, before re-opening in 2019 — concurrent with the grand opening of Essex on the Park (rendering top).