For a portfolio of properties including land, a gallery building and High Line transferable development rights in West Chelsea, NYC
W Financial closed a $10,000,000 bridge loan collateralized by various assets which include a first mortgage on a West Chelsea Gallery building on West 21st Street, a first mortgage on 4,000SF of land under the High Line on West 24th Street, a pledge of ownership interests in a ground-up condominium development on Tenth Avenue, and 37,110 SF of High Line transferable development which, at the time of the loan closing, were in hard contract to a major national developer.
The High Line, originally an elevated railway built in the 1930’s to speed the transportation of goods in and out of Manhattan, is a unique public amenity-in-the-making. Plans have been approved to turn the High Line into an elevated park similar to the Promenade Plantée in Paris further transforming and giving added vitality to Manhattan’s West Chelsea art district. The area has also been attracting some of New York’s most compelling architects and developers as its old industrial buildings give way to condominiums and rentals. The special High Line transferable air rights were approved to compensate those land owners who must restrict development under and adjacent to the High Line.
This is the borrower’s second transaction with the Fund. The borrower is a successful New York-based developer with current condominium projects ranging from Manhattan to the Hamptons who was looking for maximum speed and flexibility.
W Financial’s Private Bridge Loan refinanced a maturing loan and will establish a payment reserve to service the loan until the earlier of a) the closing of the sale of the High Line air rights, or b) the sale of the West 21st Street building.
W Financial is a direct private bridge and mezzanine lender providing short-term, special situation financing to developers and owners of commercial and multifamily real estate. The Fund, managed by Gregg Winter and Marc Bailin, was launched in 2003 and affords its high-net-worth and institutional investors an opportunity to participate in a portfolio of high-yield mortgages and mezzanine loans earning consistent returns. W Financial focuses on loan opportunities with strong sponsorship and excellent locations, where speed and certainty of execution are the borrower’s paramount concerns.