Helaba Provides $125M Loan on Extell’s UES Resi Tower Project – Commercial Observer
Gary Barnett’s Extell Development has nabbed a $125 million debt package to refinance a planned residential tower project on the Upper East Side that has faced legal hurdles, according to property records filed late Thursday.
German commercial bank lender Helaba supplied the loan on Barnett’s 10-lot site where he is planning a 22-story, 459-unit luxury apartment building at 1637 First Avenue between East 85th and East 86th streets. Helaba also provided a $118.2 million financing in 2018 for Extell to purchase lots and development rights, The Real Deal reported at the time.
The Extell project has encountered court challenges due to tenant holdouts in two properties in the large development site that created a barrier to Extell acquiring and demolishing buildings for the project’s assemblage. The developer filed permit plans in November for an L-shaped design of the SLCE Architects-designed building as a workaround to the tenant holdout problem, according to TRD.
The development will comprise both market-rate and affordable housing apartment units. It will also include a 30-foot-long rear yard and ground-floor retail space.
Officials for Extell and Helaba did not immediately return requests for comment.
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