Gary Barnett’s Extell Development secured $85.3 million to refinance a development site on the corner of First Avenue and East 86th Street in Yorkville, where the firm reportedly plans to build a 20-story residential building.
The financing, provided by Bank of the Ozarks, is backed by a six-parcel assemblage anchored by a former Gristedes supermarket at 350 East 86th Street, which Extell bought for $93 million in June 2016. The loan consolidates and replaces existing acquisition debt on the properties from Manufacturers and Traders Trust Company, combined with a new $1.1 million mortgage.
The agreement includes the possibility of increasing the loan amount to a maximum of $106 million, according to documents.
The assemblage include four low-rise apartment from 1643 to 1651 First Avenue, two of which Extell was looking to sell after stripping them of their air rights. The sixth property is another low-rise at 351 East 85th Street.
Extell has also paid over $15 million for development rights from a collection of buildings.
Permits have not yet been filed for the site and Extell was not immediately available for comment.
(To view more financing deals involving Extell Development, click here)