Children’s Investment Fund Management has shelled out another large loan for a Manhattan condo tower – this time a reported $450m construction loan against Zeckendorf Development’s ultra-high-end 520 Park Avenue.
The 51-story tower, near the southeast corner of Central Park, will feature 31 condo units, the priciest being a triplex penthouse that set a record when it hit the market last month for $130m.
The London-based hedge fund continues to finance well-known Manhattan condo developers who are willing to pay the extra fees for a single-lender solution.
“That’s what really matters – to be able to pick up the phone and have a change order if something derails and not to have all sorts of onerous issues come up, or provisions that make it difficult to execute your business plan,” said a source familiar with the deal. “That’s where these types of lenders seem to benefit. And they get paid for it.”
A $660m loan the hedge fund made to Silverstein Properties last year for the construction of 30 Park Place carried an interest rate around 10%, multiple sources have said. The 82-story skyscraper will feature a condo and Four Seasons hotel.
“They’re not going to do a deal with an unknown entity,” the source said. “They’re very sponsor driven.”
An affiliate of Children’s Fund, Talos Capital Limited, also made a $400m loan on Macklowe Properties and Los Angeles-based CIM Group’s 432 Park Avenue, where lies the newly-crowned tallest residential tower in the western hemisphere.