Urban Standard Capital, a NYC-based fully integrated real estate private equity firm provided a $52 million inventory loan to KD Sagamore, (KDS), the developer of a Lower East Side high-end luxury condominium 199 Chrystie Street, off Stanton Street.
Urban Standard Capital’s loan was structured as both senior financing and mezzanine financing with flexible release prices and a floating rate that decreases over the term of the loan which was meaningful for the sponsor.
The borrower will use the proceeds to refinance existing debt. The USC loan provides them with additional time to sell the condominiums and maximize proceeds.
“This loan reflects USC’s ability to recognize, appreciate and give value to luxury real estate. As developers, we understand cost and quality and recognize that not all square footage is the same,” said USC’s Managing Partner Seth Weissman. “There are significant distinctions in the level of product that need to be considered”
As an example, Weissman pointed to the fact that most of the 199 Chrystie’s units have double height ceilings so the cubic square footage/volume of apartments are greater. “Additionally the building has incredibly detailed millwork, stonework and metal work, which also adds value,” added Weissman who explained banks and other debt funds only lend based on a flat $ per square foot threshold, regardless of the caliber of product.
“We have different buckets of capital so we can price the same deal at different levels,” added Weissman. “If a borrower wants 65% loan to value loan, we can provide options at higher proceeds levels. We strive to give our borrower’s options and thoughtful and creative deal structures to enabled them to achieve their desired business plan.”
KD Sagamore, (KDS), a new York City based real estate development and investment firm is run by Charles Dubroff, the company’s founder and chairman.
The condominium boasts 14 villas designed by Thomas Juul-Hansen that feature two duplex penthouses with large terraces. The 14-story, 39,188 sq. ft., condo building features loft-like layouts with open concept kitchens and spa like bathrooms. It also offers a full service amenity package with custom designed attended lobby, state-of-the-art fitness center, private storages and bicycle and package rooms. All residences have high ceilings, elegant fixtures and European oak finishes, wide plank hardwood flooring, detailed millwork, Obsidian Black kitchen cabinets, Miele appliances, Dornbracht faucets and Montpellier Gris cross-cut marble countertops.
This one-of-a-kind building’s two penthouses contain six bedrooms each spread over 4,500 sq. ft. The building boasts spectacular downtown views of Sara D. Roosevelt Park and is being marketed by The Serhant Team at Nest Seekers International.
USC manages $500 million of real estate equity and debt investments across its platforms and is on pace to deploy $300 million in New York City, $100 million in the Hamptons, and $100 million in Florida in 2022.
