Extell’s One Manhattan Square is fully financed following new RXR infusion

Scott Rechler's firm ups commitment by $163M

New York /
Jan.January 30, 2017 11:12 AM

Extell Development’s One Manhattan Square is now fully funded, thanks to a commitment for an additional $163.2 million in mezzanine financing from Scott Rechler’s RXR Realty.

RXR TRData LogoTINY agreed to provide the funds on top of the $300 million it already provided for the project in August, according to filings on the Israeli bond market. With the new financing from RXR, EB-5 funding and a senior loan from a consortium led by Deutsche Bank and Natixis, the project, slated to cost $1.4 billion, is now 100 percent financed, Extell said in the filings.

The deal marks a successful end to a long and difficult quest for Extell’s Gary Barnett, who had to secure financing for the project amid a hostile construction lending market.

RXR had agreed in March 2016 to provide $463 million in loans, but later reduced that to $300 million after there were delays in making a deal for the senior debt. As a result, the interest rate on RXR’s loan also jumped from 7 percent to 8 percent.

“It was a struggle,” Barnett admitted in a September interview. “We thought we’d be able to get a higher loan per square foot price than we were able to achieve. We had to lower our sights by more than 10 percent and pay a little bit more.”

The project, at 252 South Street, comprises 815 units and over 100,000 square feet of indoor and outdoor amenities. Sales at the property launched in November, with prices ranging from $1.18 million for a 723-square-foot one-bedroom unit to $3.5 million for a three-bedroom unit spanning 1,400 square feet. It’s not clear how many units have been put in contract.

“Gary Barnett and his team continue to do a great job and all of the projects are on target,” Rechler said of his decision to increase the value of the loan.

Barnett’s not yet done wooing lenders, however. He’s still in the market for a $900 million construction loan for another project, Central Park Tower at 217 West 57th Street.


Related Articles

arrow_forward_ios
One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)
Extell lands $690M refinancing package for One Manhattan Square
Extell lands $690M refinancing package for One Manhattan Square
Extell Development’s Gary Barnett and Ze'ev Jabotinsky St 3 in Jerusalem, Israel
Gary Barnett gives Jerusalem a chance with land purchase
Gary Barnett gives Jerusalem a chance with land purchase
Joseph Tabak, Gary Barnett and Robert Gans with 617 11th Avenue, 603 West 45th Street, 533 West 27th Street (LinkedIn, Robert's Skeathouse, Google Maps, Getty)
Extell, Tabak poised to take over prized Hell’s Kitchen parcel
Extell, Tabak poised to take over prized Hell’s Kitchen parcel
From left: Nir Meir, Gary Barnett, Konrad Bicher, Eric Adams and Paul Manafort (Photo Illustration by Steven Dilakian for The Real Deal with Getty, HFZ Capital Group, Twitter/Konrad Bicher)
New York’s biggest, baddest and juiciest real estate lawsuits of 2022
New York’s biggest, baddest and juiciest real estate lawsuits of 2022
From left: The Solaire in Battery Park City; Extell’s Brooklyn Point in downtown Brooklyn; the Skyline Tower in Long Island City; The Cortland NYC; Extell Development's Gary Barnett; Related Companies' Stephen Ross (Getty, Extell Development, Google Maps, Jim.henderson, CC BY-SA 4.0 - via Wikimedia Commons)
Brooklyn, Queens gain market share in wild year for new condo sales
Brooklyn, Queens gain market share in wild year for new condo sales
RXR’s Scott Rechler (Illustration by The Real Deal with Getty)
RXR abandons plan for $345M proptech SPAC
RXR abandons plan for $345M proptech SPAC
From left: TF Cornerstone’s Fred Elghanayan, Tishman Speyer’s Rob Speyer, and RXR's Scott Rechler (Getty, Tishman Speyer, RXR)
Here’s a look at the largest office projects coming to Manhattan
Here’s a look at the largest office projects coming to Manhattan
Extell Development’s Gary Barnett with 217 West 57th Street
Another $50M sale as Barnett’s Central Park Tower discounts continue
Another $50M sale as Barnett’s Central Park Tower discounts continue
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...