Natixis Provides $128M for Chetrit M-F Redevelopment Project in NYC
- Jun 03, 2013
Natixis Real Estate Capital L.L.C. has come through for Chetrit Group once again. The direct lender recently provided Chetrit–along with partners Clipper Equity and Robert Wolf of Read Property Group–with a $128 million loan for the purchase and predevelopment of the former Cabrini Medical Center complex on E. 19th St., in Manhattan. The team will transform the approximately 395,300-square-foot property into a 372-residence luxury multi-family destination.
The one-year loan, which comes with a floating rate and an option for one three-month extension, lays the groundwork for Chetrit and partners to move forward with their plan for redeveloping the five-building site, which last traded in 2010, when an affiliate of Memorial Sloan-Kettering Cancer Center acquired it for $83.1 million.
“What attracted us to this transaction is that the luxury rental market in Manhattan is very strong, with extremely low vacancies,” Gregory Murphy, managing director, head of Natixis Real Estate Finance Americas, told Commercial Property Executive. “The Chetrit Group is a repeat borrower of ours and are extremely competent in this area, and they’ve performed well for us.” In 2011, Natixis provided the company with $85 million in acquisition and renovation financing in the form of a 36-month balance-sheet loan for the acquisition and repositioning of the legendary Hotel Chelsea.
By bringing new multi-family units to the housing market, the Chetrit team will be feeding Manhattanites’ increasing appetite for accommodations. The onetime medical center has location on its side, a fact that was not lost on Natixis. “The property’s located in the Gramercy Park submarket which is a very strong and desirable location within Manhattan,” David Schwartz, vice president, Natixis Real Estate Finance Americas, told CPE.
In general, life has come back to the capital markets in the real estate world and Natixis sees only increased activity ahead. “I think right now the markets have regained a lot of their liquidity,” Murphy said. “Transaction volume in real estate as a whole is up significantly over the last couple of years and we see the lending market fairly deep and ready to support that kind of transaction volume.”