Charney and Tavros Advance 55-Story LIC Tower With $535M in Financing

After nearly a decade of planning and site assembly, developers Charney Cos. and Tavros, in partnership with Incoco Capital, have secured $535 million in construction financing for their planned 55-story condominium tower in Long Island City, Queens. The financial backing includes a $425 million loan from Madison Realty Capital and $100 million in preferred equity provided by Kushner Cos. and OneIM.

The development, located at 24-19 Jackson Ave. and 45-03 23rd St. in the Court Square area, is set to break ground this month. Completion is projected for spring 2028. A formal name for the project has not yet been announced.

Charney and Tavros began acquiring the necessary parcels in 2016, eventually purchasing seven adjacent townhouses and air rights from two other properties. In 2022, they completed the site by purchasing the Tokyo Inn parcel for $68.5 million.

Greystone Capital Advisors structured the complex financing deal and served as exclusive advisor to the sponsors. The transaction was led by Greystone Capital Advisors President Drew Fletcher, along with Executive Managing Director Paul Fried and Managing Director Bryan Grover.

Fletcher described the funding as “an exceptionally complex transaction involving multiple layers of capital, a sophisticated assemblage and a visionary plan for a mixed-use residential development.” He credited the success of the financing to the developers’ strong track record and the market’s confidence in the project’s location and offering.

Josh Zegen, managing principal and co-founder of Madison Realty Capital, added that “Charney and Tavros were repeat borrowers with significant experience delivering luxury products in New York City.”

Madison Realty Capital’s involvement follows its recent record-setting $720 million loan to Metro Loft Developers and David Werner Real Estate Investments for converting the former Pfizer headquarters into a 1,602-unit residential property — the largest office-to-residential conversion loan in New York City to date.

Project Details

The tower, designed by FXCollaborative, will include 636 condominiums in studio to four-bedroom layouts, along with 80,000 square feet of commercial space. Anchor tenants Whole Foods and Chelsea Piers Fitness will occupy the base podium.

Chelsea Piers Fitness signed a long-term lease in July 2023 for 72,000 square feet. At the time, the company stated that the space would feature “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 building will offer panoramic views of Manhattan, Queens, Brooklyn, the East River, and surrounding bridges. Residents will have access to dining, retail, parks, and cultural institutions such as MoMA PS1, located just blocks away. The location also offers connectivity via the 7, G, E, M, N, and R subway lines, nearby buses, and the Long Island Railroad.

A Continued Partnership

Charney and Tavros are established collaborators. Just last month, the duo secured financing for 175 Third St. in Brooklyn, a future phase of their Gowanus Wharf development. The planned building will deliver approximately 1,000 residential units. That deal involved $110 million in funding from Silver Point Capital and a $35 million mezzanine loan from Brodsky/Tikehau Capital.

They’re also working with Incoco Capital on another Gowanus project at 310 and 340 Nevins St., which broke ground in February 2024. That development will include over 600 units, about 25% of which will be designated as affordable housing.

Originally reported by Gail Kalinoski in Multihousing News.