"The property's classic loft structure and high ceilings are attributes that are rarely found in equivalent buildings in this location," notes Howard Michaels, chairman of Carlton Advisory Services, which arranged the financing. "Rather, the building is more typical of those property types found in Tribeca and Soho than in the West Village, an area defined primarily by townhouses and pre-war apartment buildings."

The developer plans to attempt to have the property rezoned for residential use, which could take upwards of 15 to 18 months. If that happens, the site will then be renovated and turned into residential condos with a total anticipated project cost of $75 million.

Carlton procured a three-phase loan from a single lender. This will enable the borrower to move transition through the acquisition, entitlement and redevelopment phases of the project with prearranged financing, resulting in lower costs and ultimately increased profits, Michaels points out.

Carlton executive Ruth Barone represented the borrower and placed the financing for this transaction. This represents the second financing for this client in just over a year. The other project was called the American Express building at 157 Hudson St., across from the Hubert Condo building, in Tribeca.