NEW YORK CITY-Spectrum Group Management LLC announced Wednesday that an affiliate has closed a $24 million first mortgage loan, the proceeds of which funded the acquisition of 215-221 West 28th Street. As previously reported, American Development Group purchased the property.
The loan is secured by a first mortgage on approximately 7,500 square feet of land and associated air rights that will allow for the development of approximately 150 multifamily units, according to the announcement. The borrower, a local developer, reportedly plans to begin construction on the site later this year.
ADG has created both luxury and affordable housing throughout Manhattan, Brooklyn, the Bronx and some outlying areas. Its projects include a historic conversion of 910 Union St., in Park Slope, Brooklyn that was brought to market this past fall, a ground-up new construction condominium project at 148 E. 24th St., in the Gramercy area, which sold out in less than one year, and a planned project to create North America's largest automated parking system in downtown Brooklyn. Previously it built the Chabad House, a 5,000-square-foot Jewish student center—at New York University and a 45,000-square-foot warehouse in Jersey City.
Peter Locke, a principal at Spectrum, says in the announcement, "Spectrum's ability to close the loan in an accelerated time frame, enabling the borrower to effectuate a time-of-the-essence closing, was a key factor in sourcing and closing this transaction."
Watch this space for future revelations about ADG's plans.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
