The development team of DDG and Global Holdings has closed on a $153 million construction loan for a 50-story condominium tower under construction on the Upper East Side.
The loan, provided by M&T Bank and Union Bank, completes construction financing for the $310 million building at 180 East 88th Street, according to Joseph A. McMillan Jr., DDG’s CEO and Chairman. “To date, we’ve funded construction largely with cash, and now our full capital structure is complete,” he said.
Mr. McMillan said the 521-foot building will be the tallest residential tower north of 72nd Street on the Upper East Side. “Roughly half of the apartments will come with Central Park views, which is rare for new development in the area,” he said.
Foundation work is expected to be completed in February and construction is expected to wrap up in 2018, he said. A mix of two-bedroom to four-bedroom apartments will be priced from $3 million to $30 million.
Mr. McMillan noted the construction financing market has tightened, with “a reversion back to quality,” he said. “Developments without strong sponsorships are not easily securing loans,” he said.
DDG has closed more than 10 loans with M&T Bank, according to Mr. McMillan.