Extell lands $530M loan package for Brooklyn Point development

Deal includes $105M mezz loan from RXR

Jul.July 30, 2018 11:00 AM

Brooklyn Point at 138 Willoughby Street and Extell Development’s Gary Barnett (Credit: Alistair Gardiner for The Real Deal)

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.

Related Articles

With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)

Extell lands $690M refinancing package for One Manhattan Square

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Denizen Bushwick at 54 Noll Street (Credit: Google Maps, iStock)

A major Bronx landlord is shorting All Year’s bonds. Are his concerns legit?

CrowdStreet CEO Tore Steen (Credit: iStock)

CrowdStreet hits $1B milestone, crowdfunding firm claims

From left: 55 East 74th Street, 9 East 82nd Street, 1 Central Park South, 78 Irving Place with Adam Neumann and 111 West 57th Street (Credit: StreetEasy, Wikipedia, Getty Images)

Adam Neumann’s triplex, Russians’ Plaza pad were priciest homes listed last week

3 East 69th Street and 252 East 57th Street 

With asking prices in freefall, luxury market sees strong week

Keller Williams CEO Gary Keller

Keller Williams will cut off agents who leave