Extell lands $530M loan package for Brooklyn Point development

Deal includes $105M mezz loan from RXR

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.

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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.

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Extell lands $530M loan package for Brooklyn Point development

Deal includes $105M mezz loan from RXR

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.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

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.

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