Extell close to landing $500M loan for three Manhattan projects

Barnett will use $375M to refinance Pathmark project, two Midtown sites: documents

Rendering of 1710 Broadway, 160 East 125th Street and Gary Barnett
Rendering of 1710 Broadway, 160 East 125th Street and Gary Barnett

UPDATED, Aug. 23, 2018, 4:40 p.m.: Gary Barnett’s Extell Development is in active negotiation for a $500 million loan, backed by three Manhattan developments and shares in Central Park Tower, according to documents filed with the Tel Aviv Stock Exchange.

Roughly $375 million of the funds will go toward refinancing the three projects, all of which are in the early stages of development, the documents state.

The projects include the Pathmark site in East Harlem, which Barnett assembled for $70 million in 2014. He took out a $65 million mortgage on the property at 160 East 125th Street, and has yet to release plans for the nearly block-long site, between Lexington and Third avenues.

The second project is a Midtown assemblage at the corner of West 54th Street and Seventh Avenue. Extell recently listed another 288,000-square-foot site, which includes parcels at 1710 Broadway and 211 West 54th Street, for $200 million. Bank of the Ozarks provided a $143 million loan for the site in 2017. While no permits have been filed, Extell released drawings earlier this month for a 50-story residential building on the site.

Sign Up for the undefined Newsletter

The third project is a 10-parcel assemblage in Midtown, between West 45th and West 46th streets, which has a $76 million mortgage.

After refinancing the properties, the remaining $125 million will be used to pay back Israeli bondholders, who have expressed concern with Barnett’s ability to repay. These funds, combined with the proceeds of apartment sales from its condominium tower One57, will cover the first of the bond payments, due in December, according to Extell’s documents.

Extell did not immediately respond to a request for comment, and documents don’t reveal who the prospective lender is.

Correction: This story has been updated to clarify the location of the parcels Extell is refinancing. 

Recommended For You