MAG Partners signs $137.5M construction loan with Madison Realty Capital for 480-unit project in Chelsea

MAG Partners through the entity MAG 241 West 28th Street Owner LLC as borrower signed a construction loan with lender Madison Realty Capital through the entity West 28th 1 LLC valued at $137.5 million for the 480-unit project at 241 West 28th Street in Chelsea, Manhattan.
The deal closed on December 21, 2021 and was recorded on January 26, 2022.
This is a portion of a loan announced in October 2020 that Commercial Observer reported had a total of $173 million.

(121206140) Plans for a 480-unit, 248,060 square-foot R-2 were filed on September 16, 2019 and were permitted on May 18, 2021.
In Chelsea, the bulk, or 35 percent of the 62.6 million square feet of built space are residential elevator buildings, with office buildings next occupying 30 percent of the space. In sales, Chelsea has the 2nd highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Chelsea has 1.4 times the average amount of major developments relative to other neighborhoods and is the 16th highest in Manhattan. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.
On the tax block, the majority, or 57 percent of the 1.3 million square feet of built space are office buildings, with residential elevator buildings next occupying 26 percent of the space.
Within a 400-foot radius of 241 West 28th Street, PincusCo identified eight commercial real estate items of interests occurred over the past 24 months.
Of those eight items, three were for major renovation including a certificate of occupancy change. They were one permit with a total initial cost of $728,040 and two initial temporary certificate of occupancy issuances for projects that initially costed $5.3 million. The most recent of these three items was the temporary certificate of occupancy on December 16, 2020 for a 37,370-square-foot B building with 0 residential units at 253 W 28th Street.

Of those eight items, four were loans above $5 million totaling $98 million. The most recent of the four was Himmel + Meringoff Properties which borrowed $27 million from Capital One secured by the 76,637-square-foot, one-unit office building (O3) on 400 8th Avenue on January 3, 2022.

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