Eli and Isaac Chetrit have grand ambitions for their Midtown development site. What the brothers don’t have is a construction loan.
Along with the Sioni Group, the cousins of powerhouse developer Joseph Chetrit revealed new renderings for a 69-story, 743-foot-tall condominium they aim to build at 989-993 Sixth Avenue. The images depict a rectangular, glass tower bearing no resemblance to the Chetrits’ banal holdings elsewhere in the Garment District.
Demolition has already started and the developers plan to start construction this summer, according to a source familiar with the matter. The group tapped C3D Architecture for design work.
Their long-awaited construction financing, however, has yet to come through.
Last summer, sources told The Real Deal the group was nearing a $350 million construction loan, but nothing like that has shown up in property records.
Rising interest rates are likely to have played a role in the delay. Financing has become more expensive and many banks are backing out of the market entirely.
The developers, who could not be reached for comment, did score some financing to help cover costs: In August, Valley National Bank assumed an existing $25.5 million loan on the property and upped it to $31 million, records show.
The developers first began amassing properties for the project in 2007. The group paid $49 million for an office building and $54.3 million for a vacant hotel at 993 Sixth Avenue. They scored the final piece of the assemblage by purchasing 235,000 square feet of air rights tied to the nearby Haier Building.
Read more
Commercial
New York
Isaac Chetrit nears $350M loan for Midtown project
Commercial
New York
Isaac Chetrit lists Midtown office building for $50M
Commercial
New York
The Other Chetrit: Isaac stitches together mini-empire in Garment District
Plans for the site have changed over the years. The developers previously sought to build an 80-story tower, but in 2017 started quietly shopping the site for about $200 million.
Isaac and Eli Chetrit lead AB & Sons, which is separate from Joseph Chetrit’s Chetrit Group. They commonly partner with Jack and Ray Yadidi. Many of Isaac and Eli’s holdings are in the Garment District, including The Stewart Hotel, which they plan to convert to residential with 625 apartments and 35,000 square feet of amenities.
YIMBY first reported the news of the renderings.