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Extell increases One Manhattan Square loan to $750M
Developer also extended a mezz loan on the W Hotel
Gary Barnett’s Extell Development pulled off an additional $50 million in construction financing for its 80-story condominium project One Manhattan Square, which brings the total to the loan’s upper limit of $750 million, the firm reported Sunday on the Tel Aviv Stock Exchange.
Extell [TRDataCustom] closed on an initial $500 million in financing with a consortium of lenders including Deutsche Bank and Natixis in September 2016, with an option to extend up to $250 million within nine months.
In the intervening months, Extell increased the loan in increments, including a previous increase to $700 million in May.
The 815-unit condominium building at 252 South Street is currently under construction and topped out in September at its full height of 847 feet.
Extell also extended the deadline on a $60 million mezzanine loan on the W Hotel in Times Square, according to the documents. The loan on the 56-story property at 1567 Broadway was set to mature in November 2017and will now come due in March 2019.
Both properties are included in the portfolio that backs Extell’s Tel Aviv bonds, and the increase in liquidity could help with allaying investor fears over bond repayments, the first of which is due in 2018.
Extell was not immediately available for comment.