Reuben Brothers in on Extell’s $500M debt deal at Central Park Tower

Gary Barnett is turning to big names in real estate and banking to refinance debt at Manhattan’s Central Park Tower.

Extell Development landed a $500 million loan at 217 West 57th Street provided by JPMorgan Chase and the British private equity firm Reuben brothers, a person familiar with the matter told Bloomberg. The loan will replenish and supplement another $500 million loan already paid down through condo sales. 

The Real Deal previously reported Extell recently landed a $500 million condo inventory loan from JPMorgan Chase secured by 87 unsold apartments — about half of the inventory at the Billionaires’ Row tower — which had escaped initial attention after being erroneously reported as a mere $5 million loan.

None of the three parties involved have commented on the latest financing.

When the 179-unit building came to market, it was feted as the tallest residential building in the world, standing at 1,550 feet. Sales launched in 2018 and closings began three years later at the property, which boasts amenities such as a 60-foot pool, fitness center, sun deck and private dining room on the 100th floor.

It’s been home to notable transactions as recently as this month, when a trust tied to the France family of NASCAR purchased a sponsor unit for $16.8 million. That was $5 million off the asking price.

Discounts have been aplenty at Central Park Tower. Barnett originally forecasted a $4 billion sellout for the property, but a TRD Pro analysis in 2021 pegged the estimated sellout closer to $3 billion. Barnett acknowledged last year that the building was likely going to fall short of that mark. 

The involvement of Reuben Brothers, led by British billionaires David and Simon Reuben, adds to the more than a half-dozen real estate investments they’ve made in New York in the past few years. Other deals have included the purchase of the Surrey Hotel and financing for the Time Hotel in Times Square.

In April, Reuben Brothers paid $1 billion for Michael Rosenfeld’s Century Plaza development in Los Angeles.

— Holden Walter-Warner

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