125 Greenwich Refinanced to Completion
The long-delayed, 88-story luxury tower at 125 Greenwich Street is finally nearing the finish line. A joint venture led by Fortress Investment Group, Bizzi & Partners, and Bilgili Holding has secured a $350 million refinancing package from Starwood Property Trust. The funding replaces a $313 million loan from Northwind Group and includes a condo inventory loan. Fortress took over as lead developer in 2023 after converting its debt to equity.
The building, designed by the late Rafael Viñoly, will feature 271 condominium units with sales led by Douglas Elliman Development Marketing. Completion is expected later this year.
“Starwood Property Trust’s entry into the deal and their extensive real estate experience will create an even stronger group backing the Greenwich by Rafael Viñoly,” said Tim Sloan, co-head of real estate at Fortress.
“This transaction allows the development to be completely refinanced, with a significant rate reduction… We are proud to play a role in advancing one of Rafael Viñoly’s final architectural masterpieces,” added Morris Betesh of Arrow Real Estate Advisors.
$1 Billion Offer for The Mark Hotel?
In what could become a historic hospitality deal, an anonymous bidder has submitted a $1 billion offer for The Mark Hotel on the Upper East Side. The 150-room luxury property, owned by Alexico Group, includes the Jean-Georges-helmed Mark Restaurant and features suites listed at up to $45,000 per night. The hotel was refinanced last year with a $335 million loan, including a $300 million CMBS tranche from Goldman Sachs.
If accepted, the offer would more than triple last year’s most expensive hotel transaction and potentially reset market benchmarks.
Rabsky Group Expands Loan for 625 Fulton Street
Downtown Brooklyn's skyline is growing taller. The Rabsky Group secured an additional $70 million from Madison Realty Capital, bringing the total financing for its 39-story, 1,102-unit multifamily tower to $555 million. The development includes 30% affordable housing, 54,000 square feet of retail space anchored by Aldi, and 300 parking spaces.
“With its proximity to major employers and top education centers, Downtown Brooklyn is experiencing an influx of businesses and residents, cementing its status as one of New York’s fastest-growing residential markets,” said Josh Zegen, co-founder of Madison Realty Capital.
Ostad Family Feud Over Rent-Stabilized Portfolio
A legal battle has erupted among the Ostad brothers, who co-own 10 multifamily buildings across New York City. Michael and Ed Ostad are suing to dissolve their partnership with younger brother Steve, citing a mix of personal debts, management issues, and financial stress triggered by the 2019 rent law.
They claim the portfolio’s debt outweighs its current value due to rent regulation constraints. Steve Ostad disputes this characterization.
Steve’s attorney, Christopher Milito, said a prior similar lawsuit was rejected and that Steve “sincerely doubts” the portfolio is underwater.
🏢 Office-to-Residential: CIM Group Converts 67 Irving Place
The wave of Midtown office-to-resi conversions rolls on. CIM Group has filed plans to transform 67 Irving Place from a 12-story office property into 11 residential units. Previously occupied by WeWork, the building will join other high-profile conversions including Feil Organization’s 140 West 57th Street and Yellowstone’s 1730 Broadway proposal.
Construction Resumes at 550 West 21st Street
After years of stagnation and bankruptcy proceedings, work is restarting at 550 West 21st Street in West Chelsea. Legion Investment Group acquired the site for $87 million and secured $56 million in financing from Deutsche Bank. The reimagined 20-story project will deliver 75 luxury condos, with a potential expansion of 11,000 square feet tied to a donation to the West Chelsea Affordable Housing Fund. Completion is expected by July 2027.