NEW YORK CITY—A stalled residential project on the Lower East Side appears to be moving ahead thanks to new ownership and nearly $54 million in acquisition and construction financing.
Madison Realty Capital reports it has provided New Empire Real Estate Development with $53.5 million in acquisition and construction financing for a residential condominium project to be developed at 208 Delancey St. here. Delancey Bridge Tower recently sold the property for approximately $30 million to New Empire Real Estate Development, according to multiple published reports.
New Empire Real Estate plans to demolish the existing distressed property and construct an approved 69-unit residential condominium building that will total approximately 85,000 square feet upon completion, according to Madison Realty Capital. The project will also feature an additional 10,201-square-foot community facility.
“MRC is excited to be a part of this project given the neighborhood’s strong fundamentals and lack of new residential construction at a more affordable price point,” states Josh Zegen, co-founder and managing principal of MRC. “In addition, there is significant development activity that will continue to enhance the area including the adjacent Essex Crossing development that is expected to bring over 1.9 million square feet of new residential, commercial, and community space to the Lower East Side when completed.”
MRC funded an initial $15 million at closing to the borrower and has committed to fund an additional $38.50 million to complete construction of the project. The $53.50-million financing package represents approximately 70% of the total project cost, the real estate investment firm notes.
The property, located on the corner of Delancey Street and Pitt Street, includes a gross area of 84,579 square feet and a net sellable area of 62,529 square feet.
Delancey Bridge Tower began construction on the site in 2011 and completed excavation, foundation, and superstructure work through the fourth floor, but received a stop work order midway through the project.