, September 11, 2025
News Summary
A developer secured a $320 million construction loan to build a roughly 280,000-square-foot condominium across multiple adjacent lots in Tribeca, clearing a major funding hurdle and enabling permitting and vertical work to proceed. Nearby, the 43-story tower at 45 Park Place remains stalled and visibly unfinished amid litigation and defaulted loans. A high-end penthouse in a stacked-cube tower sold for $35.5 million in cash, while a long-running foreclosure fight over a Tribeca loft continues to shape state legal reforms. The stories highlight financing momentum, stalled assets, top-tier resales and ongoing mortgage litigation in Downtown Manhattan.
Downtown Manhattan construction roundup: big loan for new Tribeca condo, stalled Park Place tower remains unfinished, Jenga penthouse sells, long foreclosure fight continues
The biggest development: a new, large condominium project in Tribeca secured a major construction loan that clears a path for work to move forward across several adjacent lots. Meanwhile, a high-profile tower in the neighborhood sits frozen after construction stopped years ago, a luxury penthouse changed hands in a cash deal, and a long-running foreclosure battle involving a Tribeca homeowner kept raising questions about law and process.
Major construction financing moves a new Tribeca condo forward
A developer obtained $320 million in construction financing to build a roughly 280,000‑square‑foot condominium across an assemblage of Downtown Manhattan lots. The loan was provided by a private capital firm, with a broker arranging the transaction. The financing covers parcels that include addresses on Franklin Street, Fulton Street and Broadway in Tribeca.
The site had a prior owner that planned a much smaller project—a mid‑rise condominium of under 100,000 square feet—but after years of delays that owner sold undeveloped land earlier this year for about $57.6 million. Records show that owner had paid roughly $46 million for the site in 2018. The new borrower plans a substantially larger building than the earlier proposals.
With the construction loan in place, the project’s next steps will include permitting, pick‑up of on‑site logistics and hiring trades as the developer moves from land assembly into full construction. The scale of the loan suggests a sizable condominium with a long build timeline and substantial pre‑sale or preservation planning to follow.
45 Park Place: a tall Tribeca tower still frozen
A planned 43‑story residential tower in Tribeca remains in place but inactive, with construction halted shortly after the building topped out in fall 2019. The development reached its full height—about 667 feet—but no new glass curtain wall panels have been installed since work stopped. The tower and its crane remain standing and inactive.
The project was to offer about 50 condominium units and include an Islamic cultural center and a public plaza. Financial trouble began to surface publicly in 2019, followed by a mix of unpaid contractor claims, lender foreclosures tied to a roughly $219 million loan, and multiple lawsuits from construction firms seeking payment for work done. Lenders have pursued foreclosure for at least $117 million tied to the project.
Contractors and lenders continue to press claims, and the tower’s long‑term fate remains uncertain. Options include a sale, recapitalization, or prolonged legal resolution before work can resume.
High‑end sale: Jenga Building penthouse closes for $35.5M
A top‑floor penthouse in a distinctive Tribeca tower traded for $35.5 million in cash. The four‑bedroom unit measures about 5,900 square feet, with four and a half bathrooms, floor‑to‑ceiling windows and two balconies. The buyer used an LLC to take title, a common practice for privacy and liability reasons.
The seller had previously sued the building’s developers and brokers over alleged defects, and litigation tied to those claims remained in mediation even years after it began. Court filings suggested the seller had not lived in the unit and had held it as an investment.
Long foreclosure fight highlights limits of the system
A Tribeca homeowner who converted a loft into a distinctive live‑work home has fought foreclosure actions for many years, facing repeated legal filings and mounting costs. The loan traces back to 2007, with a loan modification and later transfer into a mortgage securitization pool. Over time the case exposed problems with loan servicing, questions about procedural errors in foreclosure filings, and the slow pace of the legal process.
The broader impact of the case reached the statehouse, where lawmakers passed a measure aimed at limiting lenders’ ability to restart the foreclosure clock in some situations. The law drew support from tenant and senior advocacy groups and protest from some industry interests, who warned of potential market consequences. Lenders have challenged the law in court, and litigation continues in higher courts over how broadly the new rules should apply.
The homeowner filed for bankruptcy at one point to delay a sale and later emerged from bankruptcy. Legal costs have been substantial, and the house‑style case has been cited by advocates and critics alike when discussing foreclosure reform and lender accountability.
What to watch next
- How quickly the new construction loan translates into visible site work and permits for the larger Tribeca condo project.
- Whether lenders, buyers or contractors reach a deal to restart work at the stalled Park Place tower or move to liquidate the asset.
- Any resolution of outstanding legal claims tied to the Jenga Building penthouse and whether ongoing defect disputes affect market perception of luxury product.
- Further court decisions or appeals that clarify how state foreclosure rules apply to older loans and securitized mortgage pools.
FAQ
Q: What does a $320 million construction loan mean for the new Tribeca condo?
A large construction loan signals that the developer has secured funding to start major work. It covers building costs, and once permits are approved, contractors and trades can be hired and construction schedules set.
Q: Why is 45 Park Place still unfinished?
Work at the tower stopped after the structure reached full height. Financial shortfalls, unpaid contractor claims, lender foreclosures and lawsuits have all contributed to delays in finishing exterior and interior work.
Q: Is the Jenga penthouse sale unusual?
High‑value apartment sales happen in the city, and this deal was notable for being a substantial cash purchase. The unit had been subject to earlier legal disputes over alleged defects, which remained under mediation at the time of sale.
Q: What is the Foreclosure Abuse Prevention Act and why does it matter?
The law limits lenders’ ability to restart the statute of limitations in certain foreclosure cases. It aims to protect borrowers from repeated, open‑ended drives to foreclose on old loans, but lenders have challenged some parts as potentially unconstitutional or unfair retroactively.
Q: How will these stories affect local real estate buyers and neighbors?
Active financing and sales can boost market confidence and activity; stalled projects and long legal fights can depress nearby sentiment and complicate neighborhood planning. Watch for permits, court rulings and public filings for clearer signals.
Key features at a glance
| Topic | Location | Key facts | Status / Next steps |
|---|---|---|---|
| New Tribeca condominium | Franklin St / Fulton St / Broadway | $320M loan; ~280,000 sq ft; land purchased earlier this year | Permitting and construction mobilization expected after lender draws |
| 45 Park Place | Between Church St and West Broadway | 43 stories; topped out fall 2019; multiple lender and contractor claims | Legal and financial resolution needed before work can resume |
| Jenga Building penthouse | Leonard Street, Tribeca | 5,900 sq ft; 4 beds; sold for $35.5M cash | Closed; prior defect claims remain in mediation |
| Long foreclosure fight | Tribeca loft/condo | Loan from 2007; securitized; years of litigation and high legal costs | Legislative changes and court rulings continue to shape outcome |
Deeper Dive: News & Info About This Topic
Additional Resources
- Commercial Observer: G4 Capital Partners $320M construction loan for Tribeca condo
- Wikipedia: Tribeca
- New York YIMBY: 45 Park Place remains incomplete in Tribeca
- Google Search: 45 Park Place Tribeca stalled construction
- Crain’s New York: Daniel Gold buys Tribeca penthouse for $35.5M
- Google Scholar: Jenga building penthouse construction defects
- American Banker: A bruising foreclosure fight in New York
- Encyclopedia Britannica: Foreclosure
- Commercial Observer: Urban Capital/Prosper property loan converts Tribeca building
- Google News: Tribeca construction loan $320M
