Marathon Asset Management Provides $120M Construction Loan for Ultra-Luxury Development in New York City's West Village

By: Marathon Asset Management via Business Wire

December 10, 2024 at 08:00 AM EST

Marathon Asset Management’s Commercial Real Estate platform has originated a $120 million construction loan for 125 Perry Street, an ultra-luxury residential development in Manhattan’s prestigious West Village neighborhood. This milestone marks a pivotal moment in the realization of a groundbreaking project that promises to redefine the standards for ultra-luxury condominiums in one of New York City's most coveted zip codes.

Marathon’s Commercial Real Estate Team, led by Managing Director Joseph Griffin, closely worked with the sponsor, Alf Naman Development, and their preferred equity partner, Ascendant Capital Partners, to structure and originate the construction loan.

"We are excited to partner with Alf and Ascendent in bringing this iconic project to life. This collaboration underscores our confidence in their vision and team," said Joseph Griffin, Marathon’s Head of Commercial Real Estate. “We are proud to play a role in the revitalization of 125 Perry Street and will continue to provide lending solutions across asset classes and geographies through a combination of proprietary network relationships, deep property-level experience, and differentiated market intelligence.”

The highly anticipated development will involve the adaptive reuse and conversion of a historic 1930s vintage parking garage into a seven-unit ultra-luxury condominium. The completed project, which will retain its original industrial façade, will feature two penthouses, two townhouse-style residences and three loft-style homes. As a testament to the incredible demand for the project, contracts have already been signed for nearly 60 percent of the units, achieving some of the highest price per square foot sales in NYC new development history.

Amenities will include a doorman, fitness center, a pickleball court, spa facilities, a sauna, and a limited number of parking spaces. Additionally, the top floors will offer sweeping views of the Empire State Building and the Midtown skyline. Renowned architecture firms Leroy Street Studio and Ismael Leyva Architects are spearheading the design, with Jim St. André and Stephen Ferrara of Compass leading the marketing effort. Construction is well underway and is expected to be complete in 2026.

“This transaction exemplifies Marathon’s ability to provide creative capital solutions for high-quality assets as Marathon’s CRE platform, led by Joe, provides a comprehensive source of flexible capital solutions to best-in-class sponsors,” said Bruce Richards, Marathon’s Chairman and CEO.

About Marathon Asset Management:

Marathon Asset Management, L.P. is a leading global asset manager specializing in the Public and Private Credit markets with over $23 billion of assets under management. Marathon has dedicated investment programs spanning the spectrum of Private Credit: Direct Lending, Asset-Based Lending and Opportunistic as well as the spectrum of Public Credit. Marathon was founded in 1998 and is managed by Bruce Richards (Co-Founder & CEO) and Louis Hanover (Co-Founder & CIO) and employs more than 180 professionals, with 8 Partners. Its corporate headquarters are located in New York City, and it has offices in London, Miami, Los Angeles and Luxembourg. Marathon is a Registered Investment Adviser with the Securities Exchange Commission. For more information, please visit the company's website at www.marathonfund.com.