JPMorgan Chase & Co. is providing an $850 million construction loan for the One Wall Street luxury condominium project in Manhattan, N.Y., Bloomberg News reported, citing people with knowledge of the matter.
The news outlet said the deal comes as a "coup" for developer Harry Macklowe at a time when lenders have become wary of funding projects in Manhattan.
Macklowe plans a residential conversion of the landmarked 50-story office tower, along with a retail portion. Grocery chain Whole Foods had signed up for 44,000 square feet of the 155,000-square-foot retail section in July 2016. Back then, Macklowe was reported to be seeking a $1 billion construction loan, with the project having an estimated total construction cost of about $1.5 billion.
In March, Macklowe said the conversion will be largely condo units, a departure from earlier plans of having 65% rental units. He also said he planned to inject more equity into the project and take out a smaller loan.
Citing the unnamed sources, Bloomberg said JPMorgan, which has boosted its construction lending business in the past year, plans to recruit other lenders to participate in the funding.
A JPMorgan representative declined to comment, while a spokesman for Macklowe Properties said the developer was unavailable, according to the report.