Related's 15 Hudson Yards lands $108M condo inventory loan
Wells Fargo originated the financing for 102 unsold units
Apr.April 01, 2021 02:45 PM
Related's Stephen Ross and Jeff Blau (left) with 15 Hudson Yards (Getty, Hudson Yards)
After a rough year for luxury condo sales in Manhattan, Related Companies and Oxford Properties Group sewed up a loan for unsold condos at 15 Hudson Yards earlier this week, records show.
The $107.5 million in financing, from Wells Fargo, is secured by 102 units at the luxury tower — 99 residential, two commercial and one storage. The agreement was first reported by PincusCo.
The 285-unit condo previously received an $850 million construction loan from the New York State Housing Finance Agency and London hedge fund, the Children's Investment Fund. When a condo project's sales do not meet expectations, developers often take out loans backed by unsold units to pay off construction loans that come due.
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Why the condo inventory loan is having
Sales at the luxury tower launched in September 2016 with Related looking to reap $1.74 billion. Unit prices ranged from $3.9 million to $32 million. Building amenities include a 75-foot indoor pool, spa and fitness center, screening room, golf simulator and a dining room big enough to accommodate more than 60 guests.
In January 2019 Related announced the condo was more than 60 percent sold. By the end of that year, StreetEasy records showed 54 percent of the units had been sold and the developer said another 6 percent were in contract, according to the New York Times.
A year later, it appears the building is just 65 percent sold. The condo inventory loan covers about 35 percent of the tower's unsold residential units. Corcoran Sunshine Marketing Group has been handling sales at the project since 2016. The firm did not immediately respond to a request for comment, nor did Related.
The number of residential sales in Manhattan last year dropped dramatically after the pandemic began. But new-development condo sales began to accelerate in the fourth quarter of the year and contracts for new condos asking more than $4 million have been signed at elevated levels since the beginning of the year.
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