Extell nabs $440M in financing for Midtown assemblage

Gary Barnett-led firm also bought out Meridian Capital and SL Green’s stake

New York /
Jan.January 02, 2020 02:03 PM
Extell CEO Gary Barnett and a portion of the assemblage at 562-572 Fifth Avenue, 2 West 47th, and 10 West 47th (Credit: Google Maps)

Extell CEO Gary Barnett and a portion of the assemblage at 562-572 Fifth Avenue, 2 West 47th, and 10 West 47th (Credit: Google Maps)

In one of its last big deals of 2019, Gary Barnett’s Extell Development tightened its grip on a Midtown development site, and sewed up $440 million in new financing for a future project there.

The site, not far from Extell’s International Gem Tower, is comprised of a 13-part assemblage at Fifth Avenue between 46th and 47th streets.

In two separate transactions in late December, Extell bought out Hong Kong-based Meridian Capital Limited’s stake in the assemblage for $263.7 million. It also bought out SL Green’s interest at 562 Fifth Avenue for $52.4 million.

Extell also landed the $440 million in financing for the deals, according to PincusCo Media, which first reported on the loan and buyout. The total includes a $340 million senior loan from JPMorgan Chase and another bank and a $100 million mezzanine loan from Meritz Financial Group. The project — which has as-of-right development potential of 607,557 square feet — is likely to be an office building, Extell began assembling pieces of the site in 2008, and has shelled out $540 million to date.

Since 2011, Meridian — which is linked to some of Kazakhstan’s wealthiest individuals — has invested more than $200 million into Extell’s New York real estate projects, according to an analysis of property records by The Real Deal. [PincusCo] — E.B. Solomont


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