Continuum Secures Needed Funding to Restructure Luxury Condo Project Debt

NEW YORK CITY—Developer the Continuum Company has secured a $167.5-million first mortgage loan for its Madison Square Park Tower luxury condominium project on East 22^nd Street that has been mired in a dispute with the project’s partners.

The financing deal, which was described as a “complex multi-party transaction” was announced by Madison Realty Capital, which provided the financing to Bruce Eichner of Continuum. The financing, backed by the 65-story, 83-unit luxury tower, allows Continuum to continue sales on the remaining units at the Madison Square Park Tower. To date, Madison Square Park Tower has sold 58 units for a total of approximately $400 million, according to Madison Realty Capital.

“With this transaction we have streamlined the capital stack and provided Continuum with the flexibility needed to maintain the current sales at this one-of-a-kind development,” says Josh Zegen, co-founder and managing principal of MRC.

The nearly $168-million debt restructuring puts to rest, according to Madison Realty Capital, litigation between Eichner’s Continuum and former equity investors in the luxury condo tower at 45 East 22^nd St.—Fortress Investment and Dune Real Estate Partners.

In March, Eichner alleged in court documents that Fortress and Dunne were attempting to scuttle his efforts to refinance the project and that their actions were putting the project on the brink of default, according to a report in the Real Deal.

Plaza Construction is the general contractor for the project, while Kohn Peterson Fox Associates serves as the design architect and HWA is the executive architect. The Eklund Gomes team of Douglas Elliman is the residential sales brokerage team for the Madison Square Park Tower.