Trinity Place Holdings is getting more time to finish its massive, struggling condominium development in the Financial District.
The developer reached an amended loan agreement on Wednesday with its senior lender, Macquarie Group, to resolve its defaults at 77 Greenwich Street in Lower Manhattan, according to an SEC filing.
The revised agreement extends the condo project’s completion date to September. The final residential units are expected to be finished in the coming weeks, according to the filing.
Trinity’s plans for 77 Greenwich Street have called for a mixed-use, 90-unit tower with an elementary school and 7,500 square feet of retail.
Construction of the 40-story condo tower was supposed to wrap up by this July, according to the loan agreement last year between Trinity and Macquarie. But construction delays brought on by the pandemic and supply-chain issues caused the builder to blow the deadline, according to the filing.
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The amended agreement returns to Trinity a $4 million letter of credit that was held by Macquarie. A $1 million payment will be applied to reduce accrued interest. A $3 million deposit will be held by Macquarie to cover future interest shortfalls and quarterly amortization payments of $7.5 million from unit sales.
The first payment period started Wednesday and runs through April 1. In the 12 months that ended in September, Trinity made amortization payments of more than $36 million from unit sales revenue, net of interest and transaction costs, according to the filing.
Trinity also secured a revised agreement with its mezzanine lender, Davidson Kempner Capital Management, which provided the developer with $7.5 million in 2020 to pay down $8 million of senior debt. Trinity had fallen into default with its mezzanine lender by June 2021 by failing to meet sales and construction deadlines.
Macquarie Capital, the investment arm of the Australian financial services firm, provided Trinity with a $167 million inventory loan last year to finish the project and repay its lenders on senior and mezzanine loans in default.
Macquarie’s loan had a two-year term with a one-year extension option and came as Trinity’s forbearance agreements with its lenders were set to expire.
Massachusetts Mutual Life Insurance, the project’s previous senior lender, provided Trinity with $190 million in construction financing in 2017 on a four-year term with a one-year extension option.