The Real Deal New York

Extell lands $260M construction loan for UES condo project

Consortium of lenders includes Capital One and Deutsche Bank

October 28, 2016 03:22PM
By Konrad Putzier

Gary Barnett and the Kent

Gary Barnett and the Kent at 200 East 95th Street

Gary Barnett’s Extell Development closed on a $260 million construction loan Thursday for its 23-story Upper East Side condominium development the Kent at 200 East 95th Street, The Real Deal has learned.

Capital One is the lead lender in a syndicate that also includes Deutsche Bank. Capital One confirmed the loan deal to TRD.

The financing comes a month after Barnett landed a $500 million construction loan for his Lower East Side development One Manhattan Square from Deutsche Bank, Natixis and others. He later described that process as “a struggle.” Banks have been increasingly shying away from condo construction lending in New York amid reports of a slowing apartment sales market.

The Kent, a 104-unit, 190,000-square-foot development, has a projected sellout of $535 million. The New York state Attorney General’s office accepted the condo offering plan in April. Barnett TRData LogoTINY began assembling the site in 2004, when he bought two walk-up buildings on East 94th and 95th streets, and completed it in 2013.

Apart from the Kent and One Manhattan Square, which has a projected sellout of $2.1 billion, Extell is also developing the 1,500-foot-tall condo project Central Park Tower at 217 West 57th Street. Extell is in the market for a $900 million construction loan for that project.

Capital One’s recent deals include a $68.8 million loan for Greystar’s acquisition of a North Williamsburg apartment building in March, according to Real Capital Analytics. The bank was recently in talks to lease 80,000 square feet of office space from Publicis at 11 West 19th Street.

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