The Bauhouse Group, led by Joseph Beninati, is seeking a mezzanine loan of $80 million to fund his skyscraper project at Three Sutton Place, according to the documents of the investor.
The planned project at 426-432 East 58th Street is facing fierce resistance from area residents. The tower, which is slated to be 68 storeys hall, was leveled down from the original plan of 80 storeys in August. The condo units of the 286,000-square-foot building have prices that range between $5 million and $6 million.
Michael Stern of JDS Development Group has been approached by Beninati to partner up with him on the said project. Sources said that though JDS had a preliminary discussion about the project, no progress was yet seen about it. A spokesperson for JDS also said that the firm was "definitely not involved" with the project.
The total pre-development cost of the project will be $231 million, which includes a first mortgage of $71 million, the $80 million mezzanine loan, and another $80 million of equity. Total construction costs of the project are slated to be around $526 million and will include $120 million in EG-5 funds.
Bauhouse told the New York Times that he has been searching for a partner for the joint-venture for months, and if one "doesn't show up, I'll have no choice but to sell." The area residents who are against the plan have also added to the woes of Beninati, as they have been accusing him of misleading them about the size of the project.
Meanwhile, the Bauhouse Group has received a $35 million construction loan from Doral Bank to fund the development project of a luxury condominium building at 515 West 29th Street near Manhattan's High Line, as first learned by the Mortgage Observer.
The developers of the project will begin selling the condo units at 515 West 29th Street in Fall 2014, through The Corcoran Group headed by Noble Black's team.
