After years of working on the 34th Street, the Chetrit Group and Cornell Realty are now ready to split their retail portfolio as they part ways.
Each firm will be taking 80 feet of frontage along the street in the middle of Seventh and Eight Avenue, after the two developers dissolved their partnership, according to The Real Deal.
Cornell will be taking the site at 257-263 West 34th Street, planning to develop a four-story, 35,000 square-foot retail project that could attract several retailers or a bigger single-use tenant. On the other hand, Chetrit will be having the location where they originally planned to build a 17-story hotel. However, the company has not announced the plans for the site yet.
The area has been under renovation, which was started by large-scale projects like Manhattan West, Hudson Yards and Gov. Andrew Cuomo's recently announced plans to overhaul the Farley Post Office and Penn Station.
A part of Cornell's site is a building that was acquired by Chetrit and Hager through a swap with an investor named Charles D. Cohen based in Gravesend.
The partners bought a three-story property at 261-263 West 34th Street from Cohen in March, then sold him a couple of one-story buildings a few doors to the east at 245-247 West 34th Street in December.
Meanwhile, Cornell received a $48.5 million bridge loan from Madison Realty Capital, where the $42.5 million was provided at closing and agreed to provide another $6 million in future funding. This will allow the firm to buy out Chetrit, take control of the properties at 257-263 West 34th Street and start working on the site, according to Crain's New York.
Josh Zegen, the managing principal of Madison Realty Capital, who closed on the loan within 10 days of being approached by the developer, said: "This is a prime retail location, and it has only become more so over the last few years."
