BHI, the U.S. branch of Bank Hapoalim, B.M., has extended a $200 million condo inventory loan to Malabar Residences, a newly built ultra-luxury residential condominium with ground-floor retail at 126 E. 57th St. The financing package is being used to retire the project’s existing construction loan as the tower approaches completion and moves into its Temporary Certificate of Occupancy phase.
The Malabar Residences development comprises approximately 200,000 square feet across 29 stories. The building includes 145 condominium units, with individual residences ranging from 508 square feet to 2,992 square feet. According to the project’s projections, unit sale prices are expected to span from $1.36 million at the lower end to $13.5 million for the highest-priced homes.
In addition to its residential component, the property incorporates ground-floor retail space, positioning the development as a mixed-use asset in a high-profile corridor. While the specific square footage dedicated to retail was not disclosed, the inclusion of street-level retail alongside luxury condos underscores the project’s urban, pedestrian-oriented context.
The new condo inventory loan arrives as Malabar Residences nears the point where units can begin to be occupied and sold under a TCO. Replacing the original construction financing with an inventory-focused facility is intended to support the project during the critical sales period as residential units are brought to market and ownership transitions from the developer to individual buyers.
MRR Development is the developer behind Malabar Residences. The firm’s work on the project has resulted in a high-rise condominium tower designed to target the upper tier of the residential for-sale market, as reflected in the unit size range and projected pricing.
Commenting on the transaction, BHI CEO Gil Karni framed the loan as an example of the bank’s continued confidence in New York City’s long-term appeal and evolution. He highlighted Malabar Residences as a product of experienced sponsorship, a clear development vision, and the application of strategic capital, and noted that BHI seeks to back projects that add enduring character and vibrancy to the city. Karni also pointed to MRR Development as the kind of development partner the bank values for its lending relationships.
The condo inventory loan at Malabar Residences illustrates how balance-sheet lenders are supporting the final stages of luxury condominium projects as they shift from construction to sales and occupancy, providing capital to bridge the transition from development to unit sellout.
