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Extell’s One Manhattan Square loan grows to $700M

Developer's first-quarter report shows a $30M loss

Gary Barnett and a rendering of One Manhattan Square
Gary Barnett and a rendering of One Manhattan Square

UPDATED May 25, 2017 9:15 p.m.: Gary Barnett’s Extell Development [TRDataCustom] tapped an additional $100 million on its construction loan for the 80-story condominium project One Manhattan Square, bringing the total to $700 million, the firm reported on the Tel Aviv Stock Exchange Thursday.

The developer closed on an initial $500 million in financing with a consortium of lenders, including Deutsche Bank and Natixis in September. The terms included an option to extend up to $250 million within nine months.

In an interview with The Real Deal in March, Barnett said he expects to utilize the full amount.

“We’re up to $650 million [in financing] probably now. We think we’ll get up to $750 million,” he said.

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The additional financing frees up $100 million from the $463 million mezzanine loan from RXR Realty to be used for current needs, according to the report.

Extell also released its quarterly report, and showed a $30 million loss in the first quarter of 2017, compared with an $18 million loss in the first quarter of 2016, partially due to fewer apartment sales. The report also showed that Extell had raised additional EB-5 funds for its two major projects; $189 million for Central Park Tower out of the total $340 million it’s seeking to raise, and $154 million for One Manhattan Square, up from $125 million in March.

A representative for Extell confirmed the $100 million increase.

(To view more of Extell Development’s financing transactions, click here)

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