Oaktree Capital Management gave a $43 million boost to Property Markets Group’s condominium-and-townhouse project at 111 Leroy Street in the West Village.
The investment firm provided PMG with a $42.8 million construction loan for a planned 10-story, 125-foot-tall condominium with five attached townhouses, according to records filed with the city’s Department of Finance on Friday.
According to permits filed with the city’s Department of Buildings, the project will feature 12 condo units and five connected townhouses that range from four to five stories. PMG has only filed plans for four of the five townhouse so far, DOB records show.
The developer initially planned to build a 12-story tower with 30 condo units, but revised the design after facing backlash from Community Board 2. Earlier plans also called for an LGBT center in the development, but that space will instead be dedicated to senior housing. PMG is also co-developing the skinny supertall at 111 West 57th Street with JDS Development Group. In March, the developers said they would hold off on marketing units in the tower for about a year due to the sluggish luxury market.
Oaktree’s loans to PMG come as traditional lenders are largely pulling back from providing construction financing, especially when it comes to luxury condominiums in the city. Twenty percent of the West Village project’s apartments, however, will be set aside as affordable housing, 6sqft reported earlier this year.
Oaktree, which is based in Los Angeles and has a New York office in Midtown, recently provided Chinese investment firm Cindat Capital Management with a $50 million mezzanine loan to help finance its purchase of a majority stake in seven Manhattan hotels.