Madison Realty Capital (MRC) originated a $91 million first mortgage loan collateralized by The Fitzroy building, a nearly-complete, 10-story ultra-luxury condominium located at 514 West 24th Street in the West Chelsea neighborhood of Manhattan.
The borrower, a joint venture between JDS Development and Largo Investments, acquired the asset in July 2014 and began developing the property, comprised of 14 units averaging just under 3,000 s/f.
The Fitzroy, which sits adjacent to the High Line and several prominent Manhattan art galleries, has a net sellable area of 52,276 s/f and a gross building area of 65,346 s/f.
The building systems are now complete and a number of units are already under contract — the finishes, elevators, common area and façade work are all that remain and the financing MRC provided, which took three weeks to close, will pay off any existing loans and finish construction.
“The opportunity for MRC to finance a high-profile project such as The Fitzroy underscores the caliber of sponsors seeking out our firm as a single-source lender delivering customized capital solutions,” notes Josh Zegen, co-founder and managing Principal of MRC.
“We are a unique originator that can address the needs of even the most sophisticated borrowers, with timely funding that larger banks typically cannot fulfill. We were particularly proud of our ability to close this deal in less than a month, allowing the development team to finalize this highly-anticipated residential project.”
“The financing MRC provided addressed all our requirements and accelerated construction of this extraordinary residential building,” added Michael Stern, CEO of JDS Development Group. “The Fitzroy will bring a new level of luxury living to West Chelsea and we look forward to its completion.”
In addition to JDS Development and Largo Investments serving as developers for the Fitzroy, the project team also includes executive architect Roman and Williams and engineers Severud Associates, BuroHappold, and L’Observatoire International.
Upon completion, the property will consist of 14 luxury residences with private storage units and a retail/gallery space. The residences will range from roughly 2,300 s/f, two-bedroom, 2.5-bath units to 4,500 s/f four-bedroom, 5-bath units. The four-bedroom units include a private outdoor area with terraces as well as a roof deck for all tenants. All residences are full or half-floor homes with private elevator. Pricing to date is averaging $2,660 psf, according to StreetEasy.
Construction of the property is expected to be completed during summer 2018. Aaron Appel from JLL represented the borrower.