Gary Barnett’s Extell Development scored a $700 million refi from Citigroup and Rexmark for its luxe rentals at Hudson Yards and in the East Village.
Citi provided $485 million in senior CMBS loans and Rexmark originated $215 million in mezzanine loans, Commercial Observer reported. The 10-year fixed-rate loans are interest-only and not cross-collateralized.
The financing covers 760 units over three buildings, including the mixed-use tower at 555 Tenth Avenue, composed of 600 luxury rental apartments and a school at the base. Success Academy Charter School paid $68 million for the commercial condo at 555 Tenth Avenue in 2016.
The remaining properties covered by the financing make up Extell’s latest rental development — two seven-story buildings adjacent to a site cleared by Extell in 2015 beside Stuyvesant Town in the East Village. The buildings, at 500 and 524 East 14th Street, came online in 2018 just as an oversupply of high-end units led developers to offer concessions to tenants. Barnett initially offered two months of free rent at the market-rate building, where apartments were $3,695 to $12,510 a month.
Target rented the retail portion of the building for its first small-format store in Manhattan. The retailer has been experimenting with smaller shops, inking a lease for its 10th such site in Manhattan earlier this month. The retailer, despite the sector’s overall troubles , has exceeded analysts expectations. [CO] — Georgia Kromrei