Lightstone Group Gets $300M Construction Loan For 800-Foot Condo Tower

Lower Manhattan is getting more luxury condos targeted at the next generation.

Lightstone Group has secured a $305M construction loan from Mack Real Estate Credit Strategies to build an 800-foot-tall spiral condo tower at 130 William St., Crain's New York Business reports. Meridian Capital Group senior managing director Drew Anderman arranged the loan.

The building, scheduled to be completed by the fall of 2019, will cost about $600M. With a glut of new luxury condo supply, some feel developers will be slashing prices on condos, putting projects in turmoil.

Lightstone worked through a complex process, buying several properties to purchase the development parcel for below-market prices. Units will be sold at lower prices than the ultra-luxe condos that have struggled to sell, Lightstone president Mitchell Hochberg said. Condos at lower price points have experienced rapid sell-outs.

The firm will sell units on average at $2K/SF, below the $3K/SF number at some of the most expensive new projects. Half the building will be studios and one-bedrooms — smaller apartments targeting the young, single community of workers in downtown Manhattan.

Richard Mack, a real estate investor and developer, is another example of real estate firms acting as lender in the current financing market.

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