Jun 16 2023

GDSNY and Sabal Provides $50 Million Office Construction Loan for 40 Crosby in SoHo

New York, NY – June 15, 2023 — GDS Brightstar (GDSNY) has today announced that it closed on a $50 million construction loan for 40 Crosby, a 70,000-square-foot 5-story SoHo office building owned by KPG Funds to be repositioned as a boutique luxury office building – “The Crosby” – atop prime retail space with Broadway frontage. Sabal Investment Holdings, the real estate investment management firm serving institutional investors, and GDS Brightstar, the real estate lending platform of New York-based GDSNY, are the lenders for the project.

The three-year construction loan will be used to give 40 Crosby a full building renovation, whilst creating a dedicated entrance on Crosby Street, providing a much-coveted address for office tenants that will commence a high-end, expansive multi-million re-purposing of the Crosby Street property.

The property will also feature high end infrastructure, wellness and technology offerings including KPG’s smart app allowing tenants to operate the entire building at the touch of a button. 40 Crosby boasts flexible floorplates which will be able to cater to multiple tenants, or contiguous floors for a flagship headquarters location; providing ultimate leasing flexibility.

“We continue to identify high-quality assets and real estate opportunities in New York for our partners and investors,” said Alan Rudikoff, partner and co-founder of real estate firm GDSNY. “40 Crosby is an iconic SoHo cast iron building in a triple-A location and we are proud to be a part of its continued success.”

The 11,400-square-foot office floorplates are enhanced by exquisite KPG signature design featuring up to 18′ ceiling heights, 20 oversized windows bringing in natural light, a beautiful cast-iron façade, and new management and security systems, all working to create a best-in-class product.

“We are believers in the continued recovery of Manhattan’s office and retail market and are pleased to be able to provide a flexible, innovative financing solution in conjunction with GDSNY for this high-quality project in the city,” said Tal Seder managing director of opportunistic investments at Sabal Investment Holdings. “We continue to be active participants across the capital stack, especially during periods of credit dislocation, and will continue to seek opportunities to work with best-in-class firms like KPG who are looking to reposition well located assets.”

Offered on the lower-level and ground floor, the 18,000-square-foot retail space will be an open-space design catering to a prospective big-box tenant seeking prime location in the bustling Soho neighborhood. The efficient floorplan will allow ease of operations and be structured for open accessibility.


About GDS Brightstar

GDS Brightstar, the real estate lending platform of New York-based property firm GDSNY, provides financing for office, residential and mixed-use properties on shovel-ready ground-up construction, heavy value-add repositioning, land, and inventory loans from $50 million to $500 million. Recently GDS Brightstar provided a $210 million condo inventory loan to the Hudson Companies on 1 Clinton in Brooklyn Heights.

GDSNY is an award-winning full service, vertically integrated owner, operator, developer, lender and designer of multi-family and commercial real estate in the New York metropolitan area. Founded in 2007 by architect Michael Kirchmann and Alan Rudikoff, GDSNY has delivered in excess of $4.6 billion in real estate assets throughout New York City. www.GDSNY.com