Soho Properties announced it has secured $219 million in construction financing for the development of a 43-floor, 665-foot condominium tower at 45 Park Place in the Tribeca neighborhood of Manhattan.
The financing was provided by a consortium of foreign lenders. Malaysian bank Malayan Banking Berhad (Maybank) and Kuwait’s Warba Bank are the lead arrangers on a $174 million senior construction loan, with Intesa Sanpaolo (Italy) serving as documentation agent, while Saudi investment firm MASIC provided a $45 million mezzanine loan.
The construction financing comes as concern grows that the residential condo market in key US gateway cities like New York City is overheating as some developers struggle to meet original condo sales goals. “We worry about the high-end, luxury part of the market,” one specialty finance lender recently told Real Estate Capital.
It may be that foreign banks will continue to fill in the voids as US banks are said to be approaching allocation limits for construction financing and are largely sticking to stabilized assets with strong, existing cash flows.
Maybank’s group head of global banking, Dato’ Amirul Feisal Wan Zahir, said in a statement that he is confident that “this unique project will be a success and enhance the skyline of New York, particularly the character of New Downtown.”
Construction of the tower, designed by architect Michel Abboud of SOMA Architects with Ismael Leyva Architects as the architect of record, is expected to begin in summer of 2016, with delivery of the tower in 2018.
Soho Properties is a commercial real estate investment firm and owner of office, multi-family and retail developments founded by Sharif El-Gamal in 2003 in New York City. Stribling Marketing Associates will serve as exclusive sales and marketing agent for 45 Park Place.