Gary Barnett’s Extell Development [TRDataCustom] secured $85.3 million to refinance a development site on the corner of First Avenue and East 86th Street in Yorkville, where the firm reportedly plans to build a 20-story residential building.
The financing, provided by Bank of the Ozarks, is backed by a six-parcel assemblage anchored by a former Gristedes supermarket at 350 East 86th Street, which Extell bought for $93 million in June 2016. The loan consolidates and replaces existing acquisition debt on the properties from Manufacturers and Traders Trust Company, combined with a new $1.1 million mortgage.
The agreement includes the possibility of increasing the loan amount to a maximum of $106 million, according to documents.
The assemblage include four low-rise apartment from 1643 to 1651 First Avenue, two of which Extell was looking to sell after stripping them of their air rights. The sixth property is another low-rise at 351 East 85th Street.
Extell has also paid over $15 million for development rights from a collection of buildings.
Permits have not yet been filed for the site and Extell was not immediately available for comment.
Barnett’s firm is in the process of developing another condo building in Yorkville. Located at 200 East 95th Street, the 30-story tower will have 104 units.
(To view more financing deals involving Extell Development, click here)