The Real Deal New York

Extell to refi $235M land loan at Central Park Tower

Fortress, Baupost, JPMorgan among new lenders on the project
By Katherine Clarke | December 16, 2016 02:20PM

Central Park Tower and Gary Barnett

Gary Barnett’s Extell Development is slated to refinance a $235 million land loan at its Central Park Tower condominium project with new debt from a consortium of lenders including Fortress Investment Group, Baupost Group and JPMorgan Chase, The Real Deal has learned.

The financing will close just days after Extell TRData LogoTINY secured a one-week extension on its previous loan from Blackstone, which was slated to come due Dec. 9. Blackstone will remain in the deal, sources said.

The one-year loan gives Barnett breathing room to secure a roughly $900 million construction loan for the 233-unit, 88-story ultra-luxury project, which is set to rise at 217 West 57th Street.

The company secured the Blackstone loan in 2013 and had been hoping to secure a construction loan to replace it, rather than going through a refinancing. Had Extell failed to refinance the debt, its interest rate on the loan would have shot up to 14 percent from 8 percent as part of a standstill deal.

Barnett did not respond to a request for comment Friday on the new loan.

Representatives for Baupost, Fortress and JPMorgan did not immediately return requests for comment.

Baupost, a Boston-based hedge fund, has been active in the New York market in recent months. It recently partnered with Cove Property to buy a 423,000-square-foot office building at 441 Ninth Avenue for $330 million.

Earlier this year, Extell scored approximately $300 million in equity for the project from SMI USA, the U.S. subsidiary of Shanghai’s largest state-owned enterprise. That agreement is also contingent on Extell securing a construction loan.