Tribeca condo project gets $320M loan as stalled towers and luxury resale linger

Major construction loan clears way for a large Tribeca condo; other downtown stories show mixed fortunes

The biggest development headline in lower Manhattan is a new $320 million construction loan that will fund a large condominium project in Tribeca. The financing comes from a private capital firm and will back a project planned across several adjacent lots on and near Franklin Street, Fulton Street and Broadway. The new plan calls for a building that will total roughly 280,000 square feet, a substantial increase from earlier plans for the site.

The land was previously owned by a developer that had proposed a much smaller building and had faced repeated delays. That owner sold the undeveloped site earlier this year for about $57.6 million. Records show the prior owner had bought the property in 2018 and had earlier filed drawings for a midrise condominium and a mixed-use building on one parcel. The new lender arranged the construction financing and a broker worked on the transaction.

Why this matters

The loan signals renewed momentum for big residential projects in parts of downtown Manhattan where deals had stalled during the last development cycle. A project of this size will add many new units and change the look and density of the block, and construction will likely stretch over multiple years.

Stalled tower at 45 Park Place remains frozen

Not all big projects are moving. A planned 43-story tower in Tribeca is visible from the street but dormant. The project topped out in 2019, but work stopped soon after and no new sections of the glass curtain wall have been installed since. The crane and the bulk of the structure are still in place, and recent photos show the site in essentially the same state as in fall 2019.

The tower was designed with under a full program of condominiums and included plans for a large cultural center, a landscaped public plaza, and other community elements. Financial trouble has been public for several years. Lenders and contractors have filed for unpaid loans and bills, and multiple foreclosure and bankruptcy actions have followed. At least one group of lenders has pursued foreclosure on a large loan tied to the project. The final outcome for the tower remains uncertain and may depend on loan workouts or further legal actions.

High-end resale: a Jenga Building penthouse sells for $35.5 million

A large penthouse near the top of a well-known Tribeca condominium sold in cash for $35.5 million. The unit is nearly 6,000 square feet with four bedrooms, four and a half baths, floor-to-ceiling windows and two balconies. The buyer used a shell LLC for the deed, which is common in high-end real estate, and the seller had owned the unit since 2017.

The sale closed this year and ranked among the biggest single-unit resale transactions in the city for the period. The seller had previously pursued legal claims against the building’s sponsors and brokers over alleged defects; those claims moved through the courts and mediation for years before the unit changed hands. The sale highlights how high-end condo resales can proceed even amid longer-running litigation over construction or defect claims.

Long-running foreclosure fight over a Tribeca loft continues

A photographer who converted a Tribeca loft into a distinctive home has been involved in a protracted legal fight over a mortgage dating to the late 2000s. The case stretches back to a 2007 loan, a later loan modification, and a loan that entered a large securitization. Over many years the owner defeated several foreclosure attempts on technical grounds, generating legal bills that totaled near a quarter of a million dollars.

The case is tied to broader legal and policy shifts. A state law was passed to limit lenders’ ability to restart time limits for foreclosure in some cases. Lenders and industry groups have warned that tight limits could have ripple effects for mortgage markets and securitized loans. Courts have wrestled with these issues and the litigation has continued, including a bankruptcy filing that temporarily delayed a scheduled sale and later a return from bankruptcy.

Broader takeaways

The new construction loan shows that capital remains available for big, multi‑lot projects in lower Manhattan, while the stalled tower and the long-running foreclosure cases show the other side of the market: construction risk, lender action, and legal complexity. Resales of luxury units continue to occur at high prices even when defect claims or litigation hang over properties. For residents, neighbors and potential buyers, the mix of fresh financing and lingering unfinished projects means downtown Manhattan’s skyline and market will keep changing but not always in a straight line.