Developer Michael Shvo partnered with various global and local investors to acquire $240 million worth of debt and equity to use for the acquisition and development of the property located at 125 Greenwich Street in Downtown Manhattan, New York. Shvo plans transform the site into a giant condominium tower. The intricate deal finally closed on Friday, August 29th.
David Bizzi’s firm Bizzi & Partners was brought on by Shvo as a co-developer. In addition, he received equity from New Valley, the investment company of Howard Lorber, as well as an unidentified Chinese public company. The extravagant project in Lower Manhattan will require a total equity investment around $70 million. According to The Real Deal’s source, $170 million in debt was provided by a Singapore bank along with an Indian private equity firm. Shvo purchased the property for an exuberant price of $185 million, higher than the previously reported price, from the partnership of the Fisher Brothers and the Witkoff Group.
The exchange was brokered by HFF’s Andrew Scandalios and Jeff Julien. The debt and equity financing were brokered by Howard Michaels’ Carlton Group. Michaels and Shvo did not want to comment.
Sources told TRD, that at the same location where Fisher and Witkoff had once planned to construct a 956-foot tall rental tower with 359,130 square feet, Shvo now plans to make a higher reaching tower with the same area. An insider explained that each floor will have higher ceilings as a condo tower, which will increase the height of the building without altering the actual square-footage that was previously planned.
The property sits at the corner of Greenwich and Thames streets in Lower Manhattan, only three blocks south of the site where the World Trade Center had stood. The area is experiencing a long awaited transformation from mainly a financial district to a more residential neighborhood with an increase in retail stores and tourist destinations. An example of the areas metamorphosis is Thor Equities, a retail-focused investor, has paid $31 million for three retail condo units across the street Shvo’s new property at 120 Greenwich Avenue.
Recently, Shvo partnered with Victor Homes to develop Getty gas station parcel at 239 10th Avenue in Chelsea. Early next year construction on the largest residential project in Soho, at 100 Varick Street, is scheduled to start; for this project Shvo’s partners are Erez Itzhaki, Halpern Real Estate Ventures, Bizzi & Partners and Aronov Development.