In one of its top deals since purchasing a billion-dollar Deutsche Bank loan portfolio earlier this year, TPG Real Estate has provided $112.8m in acquisition financing for a residential development project in Midtown Manhattan, Real Estate Capital has learned.
Gaia Real Estate paid Chetrit Group $156.5m for the site at 416-422 West 52nd Street, according to city property records filed today, giving the deal a 72% loan-to-value.
New York-based developer Joe Chetrit, head of Chetrit Group, purchased the property along with a lot of other adjacent buildings — formerly home to the St. Vincent’s and St. Clare’s hospitals — in December of 2007 for $84.7m.
Chetrit was intent on redeveloping them: reportedly, plans originally called for a 160-unit residential project at 416 West 52nd Street and a townhouse at 422 West 52nd Street.
Chetrit had also begun a residential conversion on a third lot, at 432 West 52nd Street, but he sold the partially complete project to JVL Property Group, Okada Acquisitions and Zion Enterprises in the summer of 2014 for $41.4m.
TPG put itself on the map as a commercial real estate lender back in January when it purchased 75% of a $2.5bn portfolio of high-yield real estate loans from Deutsche Bank’s Special Situations Group, taking along with it a team of 11 origination and risk management professionals.
The private equity firm, through a newly-formed REIT called TPG Real Estate Finance Trust (TRT), also raised $750m in capital from institutional investors for new loan originations.
Last month TPG made another loan from the platform, a $95m mortgage against Beekman Tower, a 178-unit corporate-housing property in Manhattan’s Turtle Bay neighborhood.
In July, TPG and Deutsche also pulled off their most notable transaction since the portfolio deal, refinancing the 150-room Mark Hotel on Manhattan’s Upper East Side. TPG provided $150m and Deutsche took the remaining $50m backing the nearly 90-year-old landmark hotel.