Property Markets Group and Madison Equities secured $95 million in construction financing for their luxury condominium development at 10 Sullivan Street from an undisclosed lender, according to executives at Mission Capital Advisors, which brokered the deal.
The five-year non-recourse loan was negotiated by Mission’s Managing Director Jason Cohen, Director Ari Hirt, Associate Director Steven Buchwald and Analyst Jamie Matheny. The loan will be used to build a 16-story luxury condominium and townhouse project in Soho.
The project consists of 19 luxury condos and four fee-simple five-floor townhomes, as well as parking. The building should be complete in 24 months, Mr. Hirt said.
The loan was interesting, as an offshore lender provided the cash without recourse.
“80-percent loan-to-cost construction financing for a ground-up condominium development is incredibly rare in the current market cycle,” Mr. Cohen said in a statement.
Loans provided by offshore lenders are also a relatively unusual occurrence. Messrs. Hirt and Cohen declined to name the entity that provided the funds.
Neither PMG nor Madison immediately returned calls for comment.
But this sort of deal may be set to become more common, Mr. Hirt said. “There is a lot of money that has been raised, people looking for deals,” in the offshore market, he said. He added that the loan, the rate for which he declined to state, was “unexpectedly low for this leverage.”