Chelsea Warehouse Conversion Project Receives Financing
- Sep 17, 2019
G4 Capital Partners has provided a $56 million construction loan to Erbo Properties to finance the conversion of a vacant warehouse in Midtown Manhattan into office space with a ground-floor retail component. The mortgage follows a $23.4 million bridge loan funded in March, which was used to cover pre-development costs.
The landlord will handle the redevelopment process alongside Ray Cecora and Peter Cecora of Higher Ground Development. Upon completion, the eight-story, 65,000-square-foot building will feature high ceilings and modern, industrial finishes, new elevators, a new facade, larger windows and rooftop amenities. The previous tenant, art-storage business Crozier, vacated the building in 2016.
The asset is located at 541-545 W. 21st St. in the West Chelsea submarket. It is a half-block away from The Highline elevated park, which became an increasingly desirable area for commercial development. Additionally, the property’s redevelopment falls in line with other adaptive reuse projects, which have been successfully keeping major tenants in Manhattan.
JBA Equities Principal Jonathan Aghravi originated the loan alongside Charles Han. G4 Capital Partners Co-Managing Principals Jason Behfarin and Robyn Sorid were involved in the financing deal.