Extell lands $690M refinancing package for One Manhattan Square

Prior construction loan matures on Aug. 30

New York /
Aug.August 29, 2019 04:54 PM
One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)

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

After closing over a hundred units at One Manhattan Square since March, Gary Barnett’s Extell Development has secured $690 million in new financing for the remainder of the 80-story, 815-unit Two Bridges condo tower.

The new debt consists of a $553.5 million senior inventory loan and a $138.2 million mezzanine loan, according to a disclosure filed with the Tel Aviv Stock Exchange on Thursday. Though the deal has yet to be recorded in city property records, a spokesperson for Extell said that Blackstone Group was the lender.

About $560 million of the loan proceeds will be used to retire the prior $750 million construction loan, which was provided in 2016 by a consortium led by Deutsche Bank, Bank of China and Natixis. That will free up $180 million in unit sales proceeds which were held in a deposit as part of the construction loan agreement.

Those funds, in addition to the remainder of the loan proceeds, will then be used to pay down part of a $463.2 million mezzanine loan provided by Scott Rechler’s RXR Realty, which covers not only One Manhattan Square but also two rental projects at 555 Tenth Avenue and 510 East 14th Street, both of which were completed last year.

The new loans both carry an interest rate of LIBOR plus 4 percent, and a term of 36 months, according to the disclosure on TASE.

The One Manhattan Square project includes an affordable building at 229 Cherry Street which opened last year, while the condo tower has an address of 250 South Street. Closings began in March, and city property records show that 173 units worth $291 million have closed as of Thursday — a rate of slightly less than one unit per day.

In April, Extell said it will waive common charges for up to a decade at One Manhattan Square to spur sales, one of the most extreme buyer incentives the New York market has seen this cycle.

The project, which was heavily marketed towards Asian investors, also includes a significant chunk of EB-5 financing in its complicated capital stack. TASE filings show that Extell had raised $222.5 million in EB-5 funding for One Manhattan Square as of June 30, and 283 EB-5 investors had been accepted into the program as a result.


Related Articles

arrow_forward_ios
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
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
Extell Development's Gary Barnett and 252 South Street (Getty, Extell Development, One Manhattan Square)
Extell refinances 355 unsold units at One Manhattan Square for $266M
Extell refinances 355 unsold units at One Manhattan Square for $266M
Arthur Zeckendorf and Gary Barnett with 1289 Lexington and Central Park Tower (Terra holdings, Getty, RODE, Central Park Tower)
The bargain hunters: Buyers target cheaper new development units
The bargain hunters: Buyers target cheaper new development units
Gary Barnett with Central Park Tower (Getty)
Central Park Tower condo sells for $20M off asking
Central Park Tower condo sells for $20M off asking
arrow_forward_ios

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

Loading...