550 West 21st Street, West Chelsea, New York, October 4, 2025
News Summary
Legion Investment Group, with partner AVRS Partners LP, closed a $155 million construction loan to restart work at 550 West 21st Street in West Chelsea. On-site activity includes concrete pours, equipment deliveries and trailers as crews prepare the building’s first story. The planned waterfront condominium will sit between major green spaces overlooking the Hudson River Greenway; reports differ on scope, citing 20–23 stories and roughly 75–83 units. The developer is targeting a mid-year completion, has retained a luxury marketing team, and is pursuing a modest density increase tied to a roughly $7.8 million contribution to local affordable housing. Several key project details remain unconfirmed.
Construction resumes at 550 W. 21st St. after new $155M construction loan
A new construction loan worth $155 million has closed for the waterfront site at 550 West 21st Street in West Chelsea, enabling work to restart on a stalled condominium project. The loan was provided by a real estate credit arm of a national investment firm and was arranged for the developer team led by a local development group and a partner firm. Onsite crews have been pouring concrete and mobilizing equipment and trailers as the project prepares to rise above the podium level.
What is happening now
Visible activity at the site includes recent concrete superstructure pours and delivery of construction materials and trailers. Crews are preparing to form the first story above a multi‑story podium, with vertical work expected to accelerate in the coming weeks. Sales and marketing have been assigned to a residential brokerage group, and sales are expected to launch next year.
Financing and developer details
The construction loan follows an acquisition of the same parcel by the current developer roughly a year and a half ago for about $87 million. The acquisition was initially financed with a separate $56 million loan from a large bank. The recent construction lending is intended to carry the project through vertical construction to completion.
Size, program and conflicting reports
Public reports and project filings vary on the final size and unit count for the building. Some sources describe the project as a 23‑story condominium with 83 units, while other material traces back to an earlier plan and calls the building 20 stories with 75 units. The development team is working under zoning and design parameters that could allow up to roughly 172,000 square feet, though earlier plans for the site by a prior owner had approached nearly 200,000 square feet.
Site context and amenities
The site sits between two prominent Manhattan greenways and public spaces, providing pedestrian access to riverfront paths and proximity to a local sports and entertainment pier complex. The lot is roughly half an acre and faces the West Side Highway and Hudson River Greenway. Public transit access is nearby, with downtown and crosstown subway service within a few blocks.
History and earlier development attempts
The parcel has changed hands multiple times in the last decade. A prior developer completed a ground‑floor slab and planned a 20‑story condominium before financing became unavailable and that project entered bankruptcy. The current owner purchased the site out of that bankruptcy process and has since secured acquisition bridge financing before closing the recent construction loan.
Design, approvals and open questions
No final architectural team or publicly released full design package had been confirmed at the time work resumed. Public signage at the site displays a simple diagram showing an L‑shaped massing with stepped cutouts above a podium, but no finalized renderings have been published. The team has discussed a potential trade‑off with the city that would allow an additional roughly 11,000 square feet of development in exchange for a roughly $7.8 million contribution to a local affordable housing mitigation fund.
Schedule and market context
Completion dates reported in planning materials and timelines vary slightly, with delivery estimates pointing to mid‑2027 or July 2027. The broader downtown Manhattan market has seen strong demand for new condos but relatively few new, large condo projects slated to start sales in the immediate future, creating a favorable window for new launches if market conditions hold.
Local housing and community developments (related story)
Separately, residents at two nearby public housing complexes have raised concerns about a city plan to demolish and replace their buildings. Those buildings contain more than two thousand apartments in total, and the replacement plan intends to rebuild all existing units and add new homes. Residents have expressed anxiety about potential long moves and long timeframes; the housing authority says most residents will be offered the right to return and that construction on initial replacement buildings is scheduled to begin later this year with move‑in windows in the 2028–2029 period for different sites on the campus.
Why the project matters
The site represents one of the larger waterfront development opportunities remaining in this stretch of Manhattan. Restarting construction moves the property from a stalled parcel toward delivery, while outstanding questions on unit count, height and final square footage will affect neighborhood scale, local housing supply, and developer economics. Community and city approvals tied to public benefits and affordable housing mitigation will play a role in the final project scope.
Next steps to watch
- Monitoring of vertical construction progress and public permits filings.
- Release of final architectural renderings and confirmed unit mix.
- Sales launch timing and pricing updates from the appointed marketing team.
- City decisions on the proposed additional square footage and the affordable housing contribution.
- Updates on the nearby public housing replacement timetable and resident relocation plans.
Frequently Asked Questions
What financing closed for 550 W. 21st St.?
A $155 million construction loan from a real estate credit lender was closed to fund ongoing construction activities at the site.
Who is developing the project?
The development team includes a local development group and a partner investment firm that bought the site out of bankruptcy and previously financed the acquisition with a separate bank loan.
How many units and stories will the building have?
Reports differ. Some material describes a 23‑story building with 83 condominiums; other information traces back to a prior 20‑story plan with 75 units. Final numbers will depend on confirmed plans and approvals.
When will the project be finished?
Target completion windows in project materials point to mid‑2027 or around July 2027, subject to construction pacing and approvals.
Will the project provide any affordable housing offsets?
The developer has indicated interest in adding roughly 11,000 square feet in exchange for a contribution of about $7.8 million to a local affordable housing fund; final arrangements require city review and agreement.
{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “What financing closed for 550 W. 21st St.?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “A $155 million construction loan from a real estate credit lender was closed to fund ongoing construction activities at the site.”
}
},
{
“@type”: “Question”,
“name”: “Who is developing the project?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The development team includes a local development group and a partner investment firm that bought the site out of bankruptcy and previously financed the acquisition with a separate bank loan.”
}
},
{
“@type”: “Question”,
“name”: “How many units and stories will the building have?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Reports differ. Some material describes a 23‑story building with 83 condominiums; other information traces back to a prior 20‑story plan with 75 units. Final numbers will depend on confirmed plans and approvals.”
}
},
{
“@type”: “Question”,
“name”: “When will the project be finished?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Target completion windows in project materials point to mid‑2027 or around July 2027, subject to construction pacing and approvals.”
}
},
{
“@type”: “Question”,
“name”: “Will the project provide any affordable housing offsets?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The developer has indicated interest in adding roughly 11,000 square feet in exchange for a contribution of about $7.8 million to a local affordable housing fund; final arrangements require city review and agreement.”
}
}
]
}
Key project features
| Feature | Detail |
|---|---|
| Address | 550 West 21st Street, West Chelsea |
| Developer | Local development group with partner firm |
| Construction loan | $155,000,000 |
| Acquisition price | Approximately $87,000,000 |
| Prior acquisition financing | $56,000,000 bank loan |
| Reported unit count | 75–83 condominiums (reports vary) |
| Reported height | 20–23 stories (reports vary) |
| Site size | Nearly 0.5 acre |
| Potential buildable area | Up to ~172,000 sq ft (prior plan approached ~200,000 sq ft) |
| Construction status | Concrete pours underway; site mobilized; forming first story |
| Estimated completion | Mid‑2027 to July 2027 (estimates vary) |
| Sales & marketing | Brokerage group assigned; sales expected to launch next year |
| Affordable housing mitigation | Potential +11,000 sq ft in exchange for ~$7.8M contribution |
Deeper Dive: News & Info About This Topic
Additional Resources
- ConnectCRE — West Chelsea condo project scores $155M construction financing
- Wikipedia: 550 West 21st Street
- The Real Deal — Legion nabs $155M construction loan for West Chelsea condos
- Google Search: Legion Investment Group 550 West 21st
- New York YIMBY — 550 West 21st Street resumes construction in West Chelsea
- Google Scholar: West Chelsea 550 West 21st
- The New York Times — Chelsea arts building
- Encyclopedia Britannica: Chelsea art building New York
- Artforum — Artists face displacement as iconic Chelsea art building goes on block
- Google News: Chelsea art building sale Elizabeth Foundation
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
