Hypo Real Estate Capital Corp., the New York-based subsidiary of Hypo Real Estate Bank International, closed an initial $45.4-million six-month acquisition loan which will convert to a nearly $71-million construction loan.

The 110,000-sf building is currently a six-story structure. Upon conversion and renovation, the developer will add a seventh floor, which will contain approximately seven residential condominium units, averaging 1,576 sf. Plans are also under way to convert floors two through six into residential condominium space, with units averaging 1,207 sf. The ground floor will continue to contain retail space. It is currently 100% leased to Kinko's, Tri-State Camera and the Children's Place.

The Chelsea/Flatiron district offers numerous opportunities, according to Evan F. Denner, head of real estate finance for HRECC. He says the company is "continuing to aggressively build market share in the condo-conversion marketplace in New York, as well as throughout the US."