Developers Buy Empty Lot At 65 West Broadway for $24M

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Prosper Property Group and HM Group USA have closed on a Tribeca lot that is part of a long-running development saga.

The pair told The Real Deal they have completed a deal for 65 West Broadway, an empty lot on the corner of Warren Street that has sat undeveloped for nearly a decade. Prosper, led by Damien Smith and Eddie Bender, teamed up with South Korean developer HM Group USA, led by Yongsung Kwon, to buy the site for $24 million. The developers landed a $68 million construction loan from Kriss Capital and KRE Capital Management to build 23 condos, which will range between one- and three-bedroom, above a ground-floor retail space.

First Standard Construction, which is affiliated with Propser, will serve as a general contractor for the project, which will be designed by architecture firm BKSK and interior design studio DXA. The Hudson Advisory team at Compass will broker sales.

The corner has a long and bruising history. Condo developer Cape Advisors and private equity firm Forum Absolute Equity Partners assembled the blockfront between Warren and Murray streets for $50 million in 2015, demolishing a row of buildings that had housed the Raccoon Lodge, Mariachi’s and other neighborhood mainstays. Cape landed a $52 million construction loan from Bank of the Ozarks in 2017 to build a 23-unit, roughly 57,000-square-foot condo on the site, but the project stalled a couple of years later after a partial stop-work order was issued in 2019 when neighboring building owners complained that construction was destabilizing their property. The lot sat vacant for years before hitting the market in 2023. Developer HAP Investments, which was set to work on the project, appears to have shuttered entirely earlier this year after losing control of three Harlem rental buildings.

The project marks Prosper’s second recent Tribeca assemblage. The firm closed last year on a deal with Urban Capital Group for a seven-story project a few blocks away at 32-34 Walker Street, where the developers are converting a 156-year-old textile warehouse into five full-floor loft condos and ground-floor retail.