New York, NY RXR Realty has entered into an agreement with Extell Development Company, one of New York City’s premier developers, to provide $300 million of mezzanine financing for the construction of three, class A residential and mixed use properties in Manhattan, with the option to finance up to $463 million.
The properties include 1,777 residential units and more than 200,000 s/f of retail and other ancillary uses. Development costs for all three projects are approximately $2 billion. They are:
• 555 Tenth Ave., which is located within the Hudson Yards district and includes 598 rental residential units and more than 100,000 s/f of commercial/community facility space. The 56-story development, which will offer first-class amenities and exceptional views, will commence leasing this fall.
• 500 E 14th St., which is located in the East Village and includes 160 rental residential units and 57,000 square feet of prime retail space.
• One Manhattan Sq., located at 252 South Street, which is an iconic, 80-story tower with 815 condominium units and 100,000 s/f of amenity space. More than 80 percent of the condominium units are priced between $1 million and $3 million, which represents an affordable price point for the Manhattan new-construction market. The site will also contain a 13-story building, with 204 affordable units.
“RXR is very pleased to be able to participate with Extell in these three exciting developments,” said Scott Rechler, CEO and chairman of RXR Realty. “The progress that Gary and his team have been able to make over the last few months has only added to our confidence that these projects are destined to be hugely successful.”
“We are extremely pleased to have closed this transaction with RXR Realty,” said Gary Barnett, president of Extell Development Company. “This financing, along with other sources of debt and equity, allows us to complete these projects and reaffirms our confidence in the New York City real estate market.”