Gary Barnett’s Extell secures $340M to refinance 570 Fifth Ave

Extell Development has secured $340 million to refinance its supertall development at 570 Fifth Avenue, PincusCo reported.

The property comprises 13 parcels of land for an upcoming 78-story glass-encased skyscraper with more than 1 million square feet. The building plans include green space and several setbacks as well as residences, Class A office space, and retail space on the ground floor. 

South Korea-based firm IGIS Asset Management provided the refinancing with $9.3 million in new debt. Extell’s vice president Mark Kwestel was the signatory on the loan documents, the Commercial Observer reported.

JP Morgan Chase was the prior lender in February 2020 at $340 million. IGIS acquired the remaining $185 million balance on the loan last year. 

Extell bought the sites at 570 and 574 Fifth Avenue from SL Green Realty in 2015 for $125.4 million. Extell took over the site in December 2018 with Braha Industries along with other development properties along West 46^th Street, West 47^th Street and Fifth Avenue. 

Ingka, Ikea’s largest franchisee, just signed a lease for one-third of the ground floor of 570 Fifth, at 80,000 square feet. Ingka spent between $300 million and $500 million for its stake in the investment. Extell and Ingka have not disclosed full details of their partnership.

The original plans by Extell and architect Kohn Pedersen Fox for the building included office space with hotel-residential units, but Extell did not get zoning approval and may need to change those plans. 

The project is due to be completed in 2028. 

• Christina Previte