Witkoff Group, Access Industries sign $910M construction loan with JPMorgan for XI in Chelsea

Witkoff Group and Access Industries through the entity 76 Eleventh Avenue Property Owner LLC as borrower signed a new construction loan with lender JPMorgan Chase valued at $910 million for the 250-unit residential elevator building at 501 West 17th Street in Chelsea, Manhattan. This is the development XI formerly owned by HFZ Capital Group.
The deal closed on December 23, 2021 and was recorded on January 31, 2022. The prior lender was Witkoff Group which held debt that had an original loan amount of $595 million. Witkoff acquired the property through a foreclosure process.
The property has 764,332 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $1,190 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner acquired the property on December 23, 2021.
The signatory for Witkoff Group and Access Industries was Scott Alper. The signatory for JPMorgan Chase was Simon B. Bruce.
(121190308) Plans for a 373-unit, 760,430 square-foot R-2 were filed on December 15, 2015 and were permitted on March 30, 2018.
This is part of the Witkoff Group acquisition of HFZ’s project.
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. There was one pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.
On the tax block, all properties are residential elevator.
There was a condominium project filed with the address 76 Eleventh Avenue and the name 76 Eleventh Avenue Condominium on June 29, 2016. The principals of the sponsor, 76 Eleventh Avenue Property Owner Llc, was Ziel Feldman. link
Within a 400-foot radius of 501 West 17th Street, Pincusco identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on January 21, 2022 for the $14.3 million renovation of 16,473-square-foot I building with 0 residential units at 512 West 19th Street.
Of those nine items, four were sales above $5 million totaling $212.3 million. The most recent of the four was StorageMart which bought one condo unit in the 189,000-square-foot, two-unit industrial (RI) on 99 10th Avenue for $177.8 million from Edison Properties on December 29, 2021.
Of those nine items, four were loans above $5 million totaling $190.6 million. The most recent of the four was StorageMart which borrowed $150.3 million from Barclays secured by one condo unit in the 189,000-square-foot, two-unit industrial (RI) on 99 10th Avenue on January 6, 2022.

Direct link to Acris document. link