Sky Developers is moving ahead with a big bet in Tribeca, locking down $320 million in construction financing for a ground-up condo project that will span an assemblage of Franklin Street lots, where previous projects have failed to make the grade.
G4 Capital Partners provided the loan to the developer, the Commercial Observer reported. Henry Bodek of Galaxy Capital arranged the deal, which will support a 280,000-square-foot condominium across three parcels: 65 Franklin Street, 59 Franklin Street and the corner site at 356 Broadway.
The assemblage had been in the hands of HAP Investments, the firm led by Eran Polack, which once planned a 19-story, 41-unit condo on the land. HAP picked up the site in 2018 for $46 million and spent years mulling a build that never got off the ground.
In March, the firm unloaded 360 Broadway to Sky for $57.6 million, according to Crain’s, setting the stage for a fresh plan.
HAP’s website once teased a 101,000-square-foot mixed-use condo at 65 Franklin, but Sky’s vision is significantly larger. A source told the Observer that the development will be “a much bigger building than initially thought or planned,” a sign of how bullish the firm is on the downtown condo market.
The site has historically been a contested one, wrapped in litigation. Charles Dayan’s Bonjour Capital controlled 59 Franklin Street through an LLC, which sued HAP Investments and Noble Construction Group, claiming negligent work at 65 Franklin Street destabilized the building. He was seeking at least $15 million.
Bonjour once filed plans to build an 18-story, 89,000-square-foot building with 89 luxury rentals at 59 Franklin.
Elsewhere in Tribeca, Urban Capital Group and Prosper Property Group have assembled a corner portfolio they plan to turn into a seven-story development with five full-floor loft condominium units and ground-floor retail.
The developers purchased the site at 32 Walter Street for $5.25 million. The 30,000-square-foot project is backed by a $32 million acquisition and construction loan from Kriss Capital.
— Holden Walter-Warner
Read more
One building wipes out another in Tribeca
Historic Tribeca corner slated for luxury condo redev
Israeli investors lose $70M on HAP’s Washington Heights project