Toll Brothers and Chinese Gemdale Properties and Investments have announced their formation of a joint venture to co-develop a luxury condominium project at 121 East 22nd Street in Manhattan. The project consists of a two-tower, 133-unit luxury condominium building, designed by the Office for Metropolitan Architecture (OMA), which was founded by Pritzker Prize-winning architect Rem Koolhaas. Designed by principal Sho Shigematsu, the residential tower marks the firm’s first building in Manhattan, as well as Sho’s decade-long tenure directing OMA New York.

The project is located in Manhattan’s exclusive Gramercy Park neighborhood on a site spanning East 22nd Street to East 23rd Street with corner frontage on Lexington Avenue at 23rd Street. The building will have two connected towers with a single residential entrance on East 22nd Street. The site lies one block north of the prestigious Gramercy Park, placing the project in the heart of the neighborhood which is home to a wealth of history, art, and exceptional dining. Tree-lined streets offer area residents a distinctive setting in close proximity to Midtown Manhattan, one of the most highly concentrated Class A business centers in the world, and within blocks of Silicon Alley, a tech hub benefiting from one of the most significant flows of venture capital in the United States. The site is also a short stroll to both Madison Square Park and Union Square Park.

The Toll Brothers-Gemdale joint venture has secured a $237 million construction loan from a syndicate of five banks including Bank of New York Mellon as Administrative Agent and Joint Lead Arranger, Capital One as Joint Lead Arranger, China Merchants Bank New York, MUFG Union Bank, N.A., and CIT Bank. The debt and equity were arranged by Toll Brothers’ in-house Finance Department.

Douglas C. Yearley, chief executive officer of Toll Brothers, stated: “We are very pleased to team with Gemdale to develop this spectacular luxury condominium project. 121 East 22nd Street is another in a long line of dramatic, residential projects built by Toll Brothers City Living in the New York City market. Its exceptional location within the Gramercy Park neighborhood makes this one of the most appealing buildings in which to live in all of New York City.”

Jason Zhu, Chairman of Gemdale USA, stated: “This distinctive 121 East 22nd Street project benefits from a world-class Pritzker Prize-winning architectural firm which has designed some of the leading buildings in the world.”

Michael Krupa, President of Gemdale USA, stated: “We are delighted to work with Toll Brothers, a Fortune 600 Company, and the leading builder of luxury homes in the U.S., with a nearly 50-year history of developing exceptional projects across the country. Moreover, we are delighted and honored to be part of such an iconic project in Manhattan’s distinctive Gramercy Park neighborhood.”

Frederick N. Cooper, Toll Brothers’ Senior Vice President of Finance, International Development and Investor Relations, stated: “We are excited to be partnering with Gemdale to develop this unique project. This, our first joint venture with Gemdale, is the culmination of a relationship spanning ten years and multiple interactions both in the U.S. and China. We also are very pleased that our solid banking relationships have resulted in a strong lending group to finance this landmark project.”

Source: Toll Brothers