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Chetrit recapitalizes Gramercy Square condo project

Rendering of 209-225 and 227 East 19th Street (Credit: Avoid Obvious)

Chetrit Group, Clipper Equity, and Read Property Group have secured $207.5 million in financing from G4 Capital Partners for their Gramercy Square condo project at 230 East 20th Street. The former hospital has been converted into 223 apartments spread across four buildings, TRD noted.

  • Project confronts flooded condo market: The developers paid $150 million for the site in 2013, and subsequently secured a $345.5 million financing package from Natixis and Apollo in 2015. SL Green then provided a $380 million refi in 2018, and at that point only 40 out of the 223 units were under contract. The project’s targeted sellout was $834 million. 
  • Worth Noting: The deal comes after David and Simon Reuben bought a $100 million piece of the SL Green construction loan in May. The purchase price was a discount of somewhere between 96 and 97 cents on the dollar. SL Green had previously sold other pieces of the loan, and is now believed to be completely out of the deal.
  • Reuben Brothers continue their acquisition spree: The investors’ private equity firm has entered a contract to acquire the Surrey Hotel at 20 East 76th Street for less than its $215 million asking price, Bloomberg first reported. The 189-key hotel filed for involuntary bankruptcy earlier this year, when Ashkenazy Acquisitions, the ground lease holder, filed for Chapter 11 after the hotel operator missed payments. The Reuben brothers are also in negotiations to acquire a landmark site on Rodeo Drive in Beverly Hills. [TRD+Bloomberg]

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