Charney, Tavros Secure $535M in Construction Financing for NYC Tower
The developers spent years acquiring the project parcels.
After years of planning, a 55-story, 636-condominium skyscraper project in the Long Island City section of Queens, N.Y., is moving forward following the closing on $525 million in construction financing provided by Madison Realty Capital, Kushner Cos. and OneIM to the developers. A joint venture between Charney Cos. and Tavros in partnership with Incoco Capital are building the project.
Construction is slated to start this month on the site at 24-19 Jackson Ave. and 45-03 23rd St. in Court Square. Completion is expected by spring 2028. The team has not yet determined a formal name for the project.
Charney and Tavros spent years assembling properties for the Court Square high-rise, beginning in 2016. Eventually, they bought seven contiguous townhouse properties and air rights from two other properties. In 2022, they acquired an adjacent parcel occupied by Tokyo Inn for $68.5 million to complete the space needed for the project.
The project’s financing package consists of a $425 million loan from Madison Realty Capital and $100 million of preferred equity that Kushner and its capital partner OneIM are providing.
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Greystone Capital Advisors’ structured finance team arranged the transaction and acted as the exclusive advisor on behalf of the sponsors. The team was led by Greystone Capital Advisors President Drew Fletcher, Executive Managing Director Paul Fried and Managing Director Bryan Grover.
Fletcher described the financing package in a prepared statement as an exceptionally complex transaction involving multiple layers of capital, a sophisticated assemblage and a visionary plan for a mixed-use residential development. He noted that institutional lenders’ commitment was due to the strength of the sponsorship and the market’s belief in the location and product.
Josh Zegen, managing principal and co-founder of Madison Realty Capital, stated Charney and Tavros were repeat borrowers with significant experience delivering luxury products in New York City.
Last month, Madison Realty Capital originated a record $720 million construction loan for a joint venture between Metro Loft Developers and David Werner Real Estate Investments to convert the former Pfizer’s headquarters and adjoining building in Midtown Manhattan into a 1,602-unit multifamily property. It is the largest loan for an office-to-residential conversion in New York City to date and will be the nation’s biggest conversion upon completion.
The project, detailed
FXCollaborative is the architect for the project, which will feature studios, one-, two-, three- and four-bedroom condos and a premier amenities package. The property will also have about 80,000 square feet of commercial space, and Whole Foods and Chelsea Piers Fitness will share the podium at the base of the tower. Chelsea Piers Fitness signed a long-term lease in July 2023 for 72,000 square feet to anchor the commercial space. The company stated at that time that plans included a member lounge and workspace, indoor pool, outdoor pool and sundeck, indoor basketball court, indoor track, group fitness studios including cycling and yoga studios, cardio and weight training equipment as well as athletic training spaces.
The property will offer residents views of Manhattan, Queens, Brooklyn, the East River and its bridges. The development is located near restaurants, stores, parks and museums, including MoMA PS1, a contemporary art institution at 22-01 Jackson Ave. Court Square is located in a transit hub with the 7, G, E, M, N and R subway lines available along with buses with routes through Queens, Brooklyn and Manhattan. The Long Island Railroad is also nearby.
Longtime partners
Charney Cos. and Tavros are longtime development partners. Last month, a joint venture between the two firms obtained financing to acquire 175 Third St., the site of a planned fourth building that will deliver about 1,000 units as part of their jointly developed Gowanus Wharf project in Brooklyn. Silver Point Capital provided $110 million in acquisition and development funding. Brodsky/Tikehau Capital is providing a $35 million mezzanine loan. The project will include four multifamily communities as well as retail and entertainment spaces.
They are also working with Incoco Capital on a development at 310 and 340 Nevins St. in Gowanus, which will have more than 600 units with roughly 25 percent designated as affordable. That project broke ground in February 2024.
