NEW YORK CITY—CRE investors and developers in doubt about theneed for more high-end condominiums around Manhattan are about toget bad news. One such project, a nearly 800-foot condo tower justsouth of Madison Square Park, has secured $420 million infinancing, according to the Wall Street Journal.

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The commitments—including more than $340 million froma Goldman SachsGroup debt fund and more than$80 million in preferred equity from Dune Real Estate Partners andFortress Investment Group—give the planned glass tower at 45 E.22nd St. the funding it needs to be completed, sources familiarwith the deal told the Journal.

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The deal marks a major shift for the project's troubleddeveloper, Ian Bruce Eichner, who became a symbol of real estate's last down cycle when his planned $4billion Cosmopolitan of Las Vegas resort casino stalled due to thecredit crunch. After he was unable to refinance a loan, hesurrendered the development to Deutsche Bank,which completed it and sold it to Blackstone Group earlier thisyear. Eichner also defaulted on a loan for a glitzy office tower inthe 1990s, creating a legacy that has been a deterrent for somelenders, according to the Journal.

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The deal is the latest luxury condo tower to get financed in NewYork, joining a host of towers that have been selling units forwell over $3,000 per square foot, an unimaginable price just a fewyears ago. An influx of foreign buyers and a growing amount ofwealthy buyers have helped move the market, which has led the priceof land to escalate across Manhattan.

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For more on this story, see the Wall Street Journal.

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.