Craig Lockard, VP and senior loan originator for Fremont tells GlobeSt.com that the loan covered a majority of the acquisition price for the property, but he could not reveal what percent or the total cost.
Plans for the property are currently being drawn up, with an architect now working on the drawings. Lockard tells GlobeSt.com that the new building will total 500,000 sf and will contain a base level of retail followed by 11 floors of office space and topped by 23 floors of residential units. Further details have yet to be solidified.
Lockard says construction should start by the end of this year, with the demolition of the existing buildings. As part of the deal, Lockard says Tessler and the Chetrit Group negotiated lease terminations with the existing tenants.
"The project will really invigorate the area," Lockard says. He cites the full office market in Midtown south and the growth of residential in the area as the two key factors that will aide the success of the project. Retailers have not yet been identified but Lockard says the space is likely to be filled with a high-end tenant and not a grocer or pharmacy.
Fremont has financed six other Tessler projects including the luxury condo project at 240 Park Ave. South.
As GlobeSt.com reported, the locally based Chetrit Group recently purchased the 250-room historic Berkeley Carteret Oceanfront Hotel and Conference Center in Asbury Park, NJ for $16 million.
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