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February 2, 2017
San Francisco-based commercial mortgage lender Newmark said it has raised $325 million to restart work on the former Potala Tower project at 2116 Fourth Ave.
The deal includes a $225 million JV partnership with The Molasky Group of Companies and Binjiang Tower Corp. and a $100 million construction-to-permanent loan.
In a statement, Newmark principal George Mitsanas said, “This was an extremely complex capital stack and deal structure with many moving parts.
The project faced numerous hurdles, including salvaging the principal of original investors who are now represented by the new joint venture.” PCL Construction Services is building the 41-story tower, which was designed by Weber Thompson. It will have 339 apartments, 142 hotel rooms, and 1,824 square feet of ground floor retail. Completion is expected by August of 2018. The original developer, Lobsang Dargey, recently pleaded guilty to federal fraud charges.