MRECS provides $305m loan on New York condo

Construction on the high-end development has started and first sales are expected early 2018.  

 

Mack Real Estate Credit Strategies has provided a $305 million loan to developer Lightstone for a high-rise building project in Lower Manhattan, the borrower said on Monday.

Lightstone has already initiated construction of the 800-foot high-end condominium at 130 William Street in the Financial District neighbourhood, according to the statement. Sales are expected to begin early 2018.

“We're comfortable lending to experienced sponsors at a basis that provides significant protection of our investment,” Richard Mack, chief executive officer and co-founder at the MRECS parent company Mack Real Estate Group, told Private Debt Investor .

Mitchell Hochberg, president at Lightstone, said in a statement that his team “had strong demand from the lending community for this loan”.

Additional details of the financing were not available. MRECS declined to comment on the loan terms, and Lightstone was not immediately available to comment further.

The 130 William building will feature an array of amenities including a wine cellar, pet spa, pool, yoga studio, and a rooftop observatory terrace, the company said.

The development will total 61 stories with 244 units including residential and commercial space, according to the building application filed with the city.

Lightstone purchased the property for $60 million in May 2014 from an affiliate of New York City real estate developer Joseph Stavrach, city records show.

Real estate veterans Richard Mack and Peter Sotoloff, formerly of Blackstone, launched MRECS in October 2014, as PDI reported . The Mack credit platform focuses on transitional and distressed assets throughout North America and Europe. 

Headquartered in New York, Lightstone has $2.5 billion worth of projects currently under development in the residential and hospitality sectors, according to its statement.