JPMorgan Chase has agreed to provide Harry Macklowe with an $850 million loan to construct a luxury-condo tower at New York’s One Wall Street, enabling the developer to proceed with the conversion of a landmark office building even as the city’s high-end residential market slows.
Bloomberg News reports that the deal is a coup for Macklowe at a time when lenders are wary of funding new Manhattan projects. JPMorgan, which has expanded its construction-financing business over the past year, will recruit other lenders to participate in the funding, according to people with knowledge with the transaction, who asked not to be identified because terms are private.
Macklowe, 79, is extending a bet on New York’s luxury market after building 432 Park Ave., a 1,396-foot (426-meter) Midtown tower that helped usher in a condo boom when sales began in 2012. Developers are now cutting prices and rejiggering their blueprints after the building surge left a glut of high-end apartments. For luxury homes that have found buyers in 2017, the median asking price was the lowest in at least five years, according to data last month from luxury brokerage Olshan Realty Inc., which measures contracts for $4 million or more.
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