The botched condo conversion of 45 John Street has a long and troubled history, but things are looking up for the Financial District development. The site has been in default since 2009, and late last year, investment firm Madison Realty Capital won the rights to buy the building's debt for $47 million from German lender Bayern Landesbank. Now, Crain's reports that Madison Realty Capital has turned around and sold 45 John for a $13 million profit to a investor Chaim Miller and partners, who agreed to pay $60 million. But what's interesting is that Madison Realty is financing Miller and co.'s purchase by lending them a $45 million short term bridge loan (Investopedia can explain what a bridge loan is better than we can).
Bob Knakal of brokerage Massey Knakal points out that the deal is extremely unusual these days because most distressed properties that have lingered in the city since the economic downturn have already been bailed out. Unusual or not, it's nice to know that the deal will finally bring 45 John back to the land of the living. Miller and partners plan to finish construction of the 84 condo units and bring them to market. StreetEasy still has an old description of the interiors, but it's unclear how much they will cost or what they will now be like. However, there is that two-story penthouse addition to look forward to.
· Condo Building Flip: $13M in Just Four Months [Crain's]
· 45 John Street coverage [Curbed]