Developer scales back plans for East Side skyscraper, which is now projected to cost $750M-plus
Joseph Beninati’s Bauhouse Group is seeking an $80 million mezzanine loan to fund his troubled residential skyscraper project at 3 Sutton Place, according to investor documents reviewed by The Real Deal.
The upcoming tower at 426-432 East 58th Street, which is facing fierce resistance from area residents, is now slated to be 68 stories tall — down from 80 stories in August. The total project size is slated to be 286,000 square feet, with condos slated to be priced between $5 million and $6 million. That’s according to a letter sent to potential lenders by the Carlton Group, which is trying to arrange financing for Bauhouse.
Sources said that Beninati has approached developers such as Michael Stern of JDS Development Group to partner up with him on the project. A source familiar with JDS said that though Stern had a preliminary discussion about the project, talks did not progress past that point. Reached for comment Friday, a JDS spokesperson said the firm was “definitively not involved” with the project. Douglas Elliman chair Howard Lorber is acting as a consultant on the project, according to the letter. A spokesperson for Lorber couldn’t be immediately reached for comment, and a spokesperson for Elliman declined to comment.
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