NEW YORK CITY—SL Green Realty Corp. and JPMorgan Chase are in talks to provide a mortgage for the $870 million acquisition of a large lot near the High Line, according to Crain's New York Business.
The buyer is HFZ Capital Group, Crain's reports, and the site can accommodate up to 700,000 square feet of residential and mixed-use development. Sources estimate the loan could be about $500 million.
A representative of SL Green declined to comment to GlobeSt.com while spokespeople for JP Morgan Chase and HFZ did not respond to requests for comment by press time.
HFZ agreed to buy the site—which spans the full block between West 17th and West 18th streets from 11th Avenue to the High Line—in late 2014 for approximately $1,100 per square foot, making it among the most expensive development parcels ever sold in the city.
HFZ, which is no stranger to residential projects in the neighborhood, recently has been trying to raise the necessary capital to close on the acquisition. Reportedly it's had a bit of an uphill battle as super luxury condominiums continue to be built around the city while questions arise about the size of the demand for such inventory.
HFZ is moving fast to acquire sights on the West Side. Last week the company reportedly purchased the residential portion of the Belnord, at 225 W. 86th St., for $575 million from Extell Development.
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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.
