, 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 Roundup: Major construction loan lands for new Tribeca condo; stalled tower remains frozen; luxury penthouse sells; long foreclosure fight continues
Sky Developers has secured a $320 million construction loan to build a large condominium complex in Tribeca, marking one of the biggest new financing moves in Downtown Manhattan this season. The financing covers a development that will span multiple adjacent lots and is expected to create a project far larger than earlier plans for the site.
Big picture on the new Tribeca project
The construction loan was provided by G4 Capital Partners, with the transaction arranged by a finance broker working in the local market. The loan will fund work across an assemblage that includes addresses on Franklin Street, Fulton Street and Broadway. The full development is expected to total roughly 280,000 square feet, a substantial increase over earlier proposals for the plot.
The site was previously owned by a real estate firm that had planned a much smaller building: around 19 stories and 41 units, with earlier filings describing a roughly 101,000 square foot mixed‑use condominium. That owner purchased the land in 2018 and sold the undeveloped parcel to Sky Developers in a sale earlier this year for about $57.6 million, after a period of delays on the original plan.
Why this matters
The new financing signals renewed momentum for large residential development in Tribeca, where land parcels are scarce and complicated assemblies are common. The lender backing the loan and the scale of the project suggest work could resume on construction-related tasks soon, though timelines will depend on permits and site prep.
Stalled skyscraper at 45 Park Place remains unchanged
Nearby, 45 Park Place, a planned 43‑story residential tower that reached its full height in 2019, remains unfinished and inactive. The structure and its crane remain on site, and no new glass curtain wall panels have been added since construction halted. The tower was designed to be 667 feet tall and once included plans for about 50 condominium units plus a large cultural center and landscaped plaza.
The project’s work stoppage followed a string of financial and legal problems that began in 2019, including unpaid contractor claims and large outstanding loans. Multiple lenders and subcontractors have pursued foreclosure and other legal remedies over millions in unpaid bills. As of the latest reports, the future of the tower is still uncertain and the site remains in limbo.
High-end penthouse sale in the Jenga Building
A four‑bedroom penthouse near the top of the Jenga Building on Leonard Street changed hands in a cash deal for $35.5 million. The 5,900 square foot unit includes four and a half bathrooms, floor‑to‑ceiling windows, and two balconies. The buyer used a limited liability company for the purchase, a common practice for privacy and tax planning.
The seller had previously raised construction-quality complaints related to the unit and pursued legal claims in court years ago. That litigation was not fully resolved at the time of sale, with parts of the case moving through mediation. The transaction ranks among the larger single-unit resales in the borough this year outside of brand‑new development closings.
Long-running foreclosure fight ties into policy changes
A separate long-running foreclosure dispute involving a Tribeca homeowner who converted a loft into a distinctive residence has drawn attention to procedural gaps in foreclosure law. The homeowner took out a mortgage in 2007 and later faced a chain of foreclosure actions and legal battles tied to securitized loans and questions about paperwork and service of process.
This case was among those that influenced state lawmakers to pass new restrictions intended to prevent lenders from restarting the foreclosure clock in certain ways. The measure was signed into law after legislative votes in both houses and was supported by a range of community groups and elected officials. Lenders and industry groups have warned the change could complicate enforcement of older loans and raised concerns about potential unintended effects.
What this means for Downtown Manhattan
The new construction loan and the stalled tower together reflect two sides of the city’s development picture: fresh capital and renewed projects on one hand; projects stalled by financial and legal trouble on the other. Luxury resales continue to trade at high prices, while long legal fights over mortgages reshape the rules developers and lenders must follow.
Next steps for the new Tribeca development will include permitting, detailed design work and site mobilization. The stalled tower’s future will depend on further legal outcomes and financing decisions. Observers say market conditions, interest rates and lending appetite will all affect when and whether construction resumes on these sites.
FAQ
What is the size and scope of the new Tribeca project?
The new project will cover an estimated 280,000 square feet across several adjacent lots in Tribeca, replacing earlier, smaller plans for the site.
Who provided the construction loan?
A private capital lender provided a $320 million construction loan to fund the development on the assembled lots.
Why is 45 Park Place unfinished?
Construction halted after the tower reached its full height in 2019. The pause followed financial disputes, unpaid contractor claims, and a string of lender actions and lawsuits that left the project without active work.
How big was the penthouse sale in the Jenga Building?
The penthouse sold for $35.5 million. The unit is about 5,900 square feet with four bedrooms and two balconies.
What is the status of the long foreclosure case in Tribeca?
The homeowner fought a series of foreclosure actions over many years. The case prompted legal and legislative responses and remains an example of how foreclosure timing and procedure can become complex in securitized loan situations.
Key project features at a glance
| Item | Detail | Status |
|---|---|---|
| New Tribeca condominium | $320M loan; ~280,000 sq ft across multiple lots (Franklin, Fulton, Broadway) | Financing secured; development planning to proceed |
| Previous site owner | Firm had planned a 19‑story, 41‑unit building; sold site earlier this year for about $57.6M | Site ownership transferred to new developer |
| 45 Park Place | 43‑story, 667‑foot tower; work stopped after topping out; includes planned cultural center and plaza | Construction halted; legal and financial disputes ongoing |
| Jenga Building penthouse | 5,900 sq ft, four beds, two balconies; sold for $35.5M in cash | Sale closed; prior defect claims were in mediation |
| Long foreclosure case | Mortgage from 2007; years of legal battles; prompted changes to state foreclosure rules | Case influenced law changes; litigation and appeals continued |
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
