NEW YORK — HFZ Capital Group, whose founder and chairman is Ziel Feldman, has secured the acquisition of an $870 million development site after securing $1 billion in financing. The property, known as 76 Eleventh Avenue, is a full city block from 17th to 18th Streets between Tenth and Eleventh Avenues that runs along the High Line Park in Manhattan’s Chelsea neighborhood.
High Line Park is an elevated trail built on a section of the former New York Central Railroad.
The financing will cover the purchase price for the property, as well as other pre-development expenses, according to media reports. A group including JPMorgan, BlackRock and SL Green provided the money.
Carlton Group, owned by Howard Michaels, represented HFZ in the transaction. According to reports, 70 percent of the financing package is a loan and the remainder is equity. Howard Michaels, chairman of Carlton Group, acted as a financial advisor to HFZ in the transaction.
HFZ reached an agreement to buy the site last year. The financing will allow the developer to close on the property at a price of $1,100 per square foot.
“We have a unique opportunity at 76 Eleventh Avenue to develop an architecturally significant project with unparalleled views of the river and the skyline of New York,” says Feldman.
HFZ Capital Group is a Manhattan-based real estate investment and development firm. The company has acquired, owned, developed and operated properties across asset classes including residential, hotel, retail, sports and entertainment.
Over the span of 25 years, HFZ has bought, sold and developed over 13,000 residential units in Manhattan. The company is currently managing and developing more than 5 million square feet of real estate and bringing nearly 2,000 residential units to market.
— Haisten Willis