Klövern, GDSNY borrow $100M from Klövern AB bondholders for development in Plaza District

Swedish real estate company Klövern AB and GDS Development Management through the entity 417 Park Avenue Corporation as borrower signed a loan agreement with lender Klövern AB bondholders through the entity Nordic Trustee & Agency AB valued at $100 million for 417 Park Avenue in the Plaza District. The deal closed on June 1, 2020 and was recorded on June 3, 2020.
The property contains a total of 89,651 square feet of built space.

The loan was provided by the sale of bonds. Klövern and GDSNY bought all the cooperative units in the building for $184 million. This is the first debt the developers have secured by the parcel, and is not a construction loan. It is expected that the developers will demolish the existing co-op building and construct a new tower using development rights related to the East Midtown rezoning.

Over the past five years, there have been 4 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 4 renovation/alteration projects (A2) applied for with a total estimated value of $655,480.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link

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