Gary Barnett’s Extell Development finalized a $530 million loan package for Brooklyn Point, a 68-story residential tower in Downtown Brooklyn. The deal includes a $425 million construction loan and $105 million mezzanine loan, completing the financing for the 485-unit project, according to documents filed with the Tel Aviv Stock Exchange.
The condominium tower, at 138 Willoughby Street, was designed by Kohn Pederson Fox, and has a projected $901 million sellout. It is the third tower in the 1.8 million-square-foot City Point project, which includes 600,000 square feet of retail.
The construction loan is from a consortium of banks led by M&T Bank and carries a 4 percent interest rate over Libor. It includes a condition that Exell must repay at least $100 million within the first 42 months, from the proceeds of condominium sales. Extell must also meet a schedule of condominium sales, with a first milestone of $175 million within 24 months.
The $105 million mezzanine loan form Scott Rechler‘s RXR Realty carries a 10 percent interest rate, with an option to extend for 15 months.
Both loans come due in 2022.
Extell paid $120 million for the Willoughby site in 2015. In February, the company upped the sellout from $838 million to $901 million, and apartments will range from $850,000 for studios to about $4 million for the larger units.