Gary Barnett’s Extell Development has secured up to $750 million in construction financing for the development of One Manhattan Square in Manhattan’s Lower East Side neighborhood.
Natixis Real Estate Capital, Deutsche Bank and Industrial & Commercial Bank of China are co-leading the financing, and CIT Bank and China Merchants Bank are additional members of the bank group, according to a statement from Natixis.
RXR Realty is reportedly providing an additional $300 million mezzanine loan, which was said to have been reduced from an original $463.2 million agreement after delays in securing the construction loan, while the interest rate was raised a percentage point to 8 percent. (Natixis did not respond to requests for the terms of the construction loan).
Any delay that occurred in securing financing could arguably be attributed to reluctance on the part of lenders as the New York condo market — and residential market more generally — cools down after years of aggressive building, price increases and lofty sales projections.
At completion in 2019, the property at 252 South Street is planned to rise 80 stories and contain 815 residential condominium units with 100,000 sq ft of amenity space, a 105-space parking garage and 45,000 sf of retail space.
Extell has served as a poster child for New York’s ‘supertall’ condo market. The developer is behind One57, a 75-story skyscraper at 157 West 57th Street, just south of Central Park, which opened in 2014. A number of other new residential supertall towers have followed, including CIM Group’s now complete 432 Park Avenue and Extell’s own Central Park Tower, which is also under development.
The residential condominium units at One Manhattan Square will offer views of Manhattan, the Brooklyn and Williamsburg Bridges and the East and Hudson Rivers. Amenities will include “a basketball court, bowling alley, squash court, golf simulator, bar/lounge, pool room, cigar room, wine room, theater, spa lounge, sauna, lap pool, kid’s pool, dog wash, package/dry clean room, bicycle storage, refrigerated storage, fitness room and outdoor landscaped areas,” according to Natixis.