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.
Legion Investment Group Secures $155 Million Construction Loan as Work Restarts at 550 West 21st Street in West Chelsea
A construction loan of $155 million has closed for the waterfront site at 550 West 21st Street, allowing on-site work to resume on a condominium project in West Chelsea. The financing came from a real estate credit arm of an investment firm and was arranged for developer Legion Investment Group with partner AVRS Partners LP. Visible activity at the site includes recent concrete pours, arrival of construction equipment and trailers, and material deliveries as crews prepare to form the building’s first story.
What the project is
The development is planned as a condominium building on a parcel that sits between two major waterfront green spaces and links to extensive pedestrian and recreational pathways along the Hudson. The lot sits across from a prominent sports and leisure complex on the river and overlooks the Hudson River Greenway and the West Side Highway. The property is roughly half an acre.
Height, unit count and design details (conflicting reports)
Public reports differ on exact size and scope. Some accounts put the building at 23 stories with 83 condominiums, while other information references a 20-story plan yielding 75 condominiums. No architect has been publicly announced, and the only visible public rendering is a construction-board diagram showing an L-shaped massing with stepped cutouts above a multi-story podium. The developer has the ability under current allowances to build up to roughly 172,000 square feet, while an earlier plan for the site had been sized closer to 200,000 square feet.
Timeline, sales and approvals
Site signage indicates a target completion in mid-2027, with some calendars on the site showing an anticipated July 2027 move-in or final delivery window. A luxury marketing team has been retained to lead sales, with an official sales launch expected next year. Crews on site are preparing forms for the first floor and are expected to begin rising above the podium in the coming weeks.
Financing and ownership history
The developer acquired the stalled property out of bankruptcy roughly a year and a half ago, paying in the high eighties of millions of dollars for the lot. That acquisition was financed in part with a roughly $56 million loan from a major bank. The plot had changed hands previously in the last decade when an earlier developer purchased and began a different 20-story condominium plan before that project entered bankruptcy and stopped construction.
Public benefits and potential increases in density
The current team is seeking to add approximately 11,000 square feet to the project footprint in exchange for a roughly $7.8 million contribution to a local affordable housing mitigation fund serving West Chelsea. That exchange has been presented as a pathway to modestly increase the project’s density while creating funding for neighborhood affordable housing efforts.
Market context and nearby development activity
The west side downtown market has seen strong demand for new condominiums, with few large downtown condo projects expected to launch sales in the near term. Nearby high-profile developments have reported significant sales activity in recent years, and several other residential projects in the area are in varying stages of sales or construction.
Related local housing redevelopment
Separately, residents of two public housing campuses in Chelsea are contesting a plan to demolish and replace existing buildings on their campuses. The public housing authority plans phased demolition and replacement that would preserve the existing unit count and add new units, and officials say most residents will be offered a right to return to a unit equal in size to their current home. Residents and advocates remain concerned about the timing and potential disruptions, and some households have protested planned relocations and temporary moves ahead of the first replacement buildings, which are scheduled to start construction late this year with phased move-ins slated in 2028 and 2029.
Why the new loan matters
The construction loan aligns with renewed on-site activity and clears a major financing milestone for the developer. The package supports the restart of vertical construction on a rare waterfront parcel in the neighborhood. The mix of financing sources on the project now includes the recent construction loan, prior acquisition financing, and arrangements for sales and marketing as the project moves toward public listing and delivery.
Remaining unknowns
Several details remain unresolved publicly: final unit count and height, the project’s architect, precise square footage after any negotiated density increases, and the timing of a formal sales launch. Observers and prospective buyers will be watching forthcoming filings, marketing releases and construction filings for clarification.
Frequently Asked Questions
What financing closed for 550 West 21st Street?
The project closed a construction loan of $155 million provided by a real estate credit lender; the loan supports construction activities and site mobilization.
Who owns and is developing the site?
The site is owned by an investment group that acquired the property out of bankruptcy and is developing the condominium project with a local partner.
How many units and how tall will the building be?
Reports vary. Some information lists 83 units across 23 stories, while other details reference 75 units in a 20-story form. Final counts and height are not yet publicly confirmed.
When is the project expected to complete?
Publicly posted schedules indicate a target delivery in mid-2027, with a specific July 2027 date shown in some on-site materials.
Will the project include any community benefits?
The developer has proposed adding about 11,000 square feet in exchange for a contribution of approximately $7.8 million to a local affordable housing mitigation fund.
Is construction already underway?
Yes. Concrete pours have been underway, crews are preparing first-floor forms and new trailers and materials are on site as the project resumes vertical work.
How does this development relate to nearby public housing plans?
While separate projects, both the private development and the public housing replacement work are part of a broad neighborhood wave of construction and redevelopment. Public housing residents are currently engaged in discussions and protests over planned demolition and replacement work on two nearby campuses.
Key project features
| Feature | Details |
|---|---|
| Address | 550 West 21st Street, West Chelsea |
| Construction loan | $155,000,000 from a real estate credit lender |
| Developer | Legion Investment Group with partner AVRS Partners LP |
| Site size | Approximately 0.5 acre |
| Reported unit counts | Conflicting reports: 75 or 83 condominium units |
| Reported height | Conflicting reports: 20 stories or 23 stories |
| Buildable area | Approximately 172,000 sq ft allowed; earlier plan nearer 200,000 sq ft |
| Planned community contribution | ~$7.8 million to a West Chelsea affordable housing fund for ~11,000 sq ft |
| Acquisition price | Developer acquisition from bankruptcy in the high $80 millions |
| Acquisition financing | Approximately $56 million from a major bank |
| Expected completion | Mid-2027 (some site materials show July 2027) |
| Sales and marketing | Specialized luxury marketing team retained; sales expected to launch next year |
| Architect | Not publicly announced |
| Transit | Near multiple subway lines and the West Side Highway / Hudson River Greenway |
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
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