Monday, June 29, 2015

WSJ: 550 Vanderbilt gets $200M construction loan; penthouse condo will cost $7 million

The Wall Street Journal, in Pacific Park Condo Gets Construction Loan, reports today that the 550 Vanderbilt condo building got a $200 million construction loan from HSBC Holdings PLC. Such market-rate units cannot depend on tax-exempt financing, as do buildings with "affordable" units.

Two tidbits, first the unit price:
Most of the units will be in the $565,000 to $1.5 million range, but a few of the penthouses will be priced at as much as $7 million.
That's an increase from the initially-indicated price ceiling of $5.5 million, unless they were simply holding such $7 million penthouses in reserve.

And the overall cost:
Mr. [Jeff] Rosen [executive director of the joint venture, Greenland Forest City Partners] declined to put a price tag on the condo. But generally construction loans are equal to 60% to 65% of project value, say real-estate experts. The venture recently received approval from the New York attorney general’s office to start sales and marketing of the condos.
If $200 million is 60% of project value, the total cost is about $333 million. If $200 million is 65% of project value, the total cost is about $308 million.

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