KPG Funds has closed on a $50 million construction loan for 40 Crosby, a 70,000-square-foot, five-story SoHo office building it owns and will reposition as a boutique luxury office building with prime retail space. Sabal Investment Holdings and GDS Brightstar, the real estate lending platform of New York-based GDSNY, are the lenders for the project.
“By never wavering in our belief in the resilience of the greatest city in the world, we are being rewarded with the ability to construct bespoke office space in a gorgeous cast iron building in a premiere location,” said Rod Kritsberg, KPG’s co-founder and chief investment officer. “KPG’s white glove management, exceptional amenities and top co-tenancy will further enhance the cache of 40 Crosby.”
According to Kritsberg, the three-year construction loan will be used to give 40 Crosby a full building renovation. In addition, the business plan calls for creating a dedicated entrance on Crosby Street. Improvements will consist of a separate entrance on Crosby Street with high-end pre-built office space.
The property will also feature high-end infrastructure, wellness and technology offerings including KPG’s smart app allowing tenants to operate the entire building at the touch of button. 40 Crosby boasts flexible, 11,400-square-foot floorplates which will be able to cater to multiple tenants, or contiguous floors for a flagship headquarters location.
“Bespoke office is on fire and we can’t build fast enough to accommodate the demand for our Signature KPG office product,” said KPG co-founder and CEO Greg Kraut. “The demand for office space post-covid is being redefined in 2023 by landlords who provide an ultra-high-end experience for their tenants in highly desirable locations.”
The refinancing was arranged for KPG by debt brokers Nick Scribani, Dustin Stolly and Jordy Roeschlaub at Newmark.
