Bhanu Choudhrie and Samvir Sidhu’s Megalith Capital Management has teamed up with Gary Barnett’s Extell Development for developing a condo on West 66th Street. The project will come up on a piece of land that combines three parcels, one of which is a synagogue.
Extell Development has loaned $96 million from Natixis Real Estate Capital for a balance-sheet loan term of 18 months with the option of a six-month extension. Part of the loan amount is directed at paying back some of the accrued debts from when the lots were first purchased.
It is also reported that Extell Development paid $45 million to the local religious group, Congregation Habonim, for the synagogue at 44 West 66th Street. The buyout, partnered with Megalith, will provide Extell with 75,000 square feet of total buildable space, 74,880 square feet of which comes from the lots at 36-40 West 66th Street combined.
Extell has combined the site with the buildings at 36-40 owned by Megalith since March when it paid $85 million to purchase those.
Megalith Capital Management was born in 2009 and has since then built an impressive asset portfolio valued at nearly $200 million. The firm’s core area of focus is the New York market though Texas and California remain areas of interest as well.
Megalith’s New York acquisition kicked off in 2011 when it acquired a number of Brooklyn multifamily assets. Having found its footing in the multifamily mould, Megalith has now also geared towards Gen Y infrastructural development.
In 2013, it acquired 200 Water Street, which had existed as a warehouse along with a portion of land, from the Watchtower Society. It now plans to transform the warehouse into a condominium while the piece of land would be developed for rentals.