Extell Development signs $400M construction loan with Bank OZK, part of $967M package

Extell Development through the entity West 66th Sponsor LLC as borrower signed a new construction loan with lender Bank OZK valued at $400 million for the planned condominium tower at 50 West 66th Street in Lincoln Square, Manhattan.
The deal closed on February 8, 2022 and was recorded on February 28, 2022. The prior lender was CIT Bank which held debt that had an original loan amount of $218 million.

The signatory for Extell Development was Marc Kwestel. The signatory for Bank OZK was Cliffton Hill.

There has been one demolition project filed for the parcels over the past five years.
The full financing package is $967 million, according to the Commercial Observer, for the 69-story project at 50 West 66th Street. Bank OZK will provide a total of $800 million and JVP Management will provide $167 million in a mezzanine loan, the CO reported. Christopher Niederpruem was the signatory for the loan assignment, and he is with CIT Bank, according to his LinkedIn profile. Natixis originated the $218 million loan in 2017 then assigned it to CIT Bank in 2019.

In Lincoln Square, the majority, or 67 percent of the 30.8 million square feet of built space are residential elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Lincoln Square has near average sales volume among other neighborhoods with $255.9 million in sales volume in the last two years and is the 30th highest in Manhattan. For development, Lincoln Square has had very little major development activity relative to other neighborhoods.It had 312,706 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.
On the tax block, the majority, or 88 percent of the 1.4 million square feet of built space are residential elevator buildings, with retail buildings next occupying 5 percent of the space.
Within a 400-foot radius of 15 West 65th Street, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
One of those four items was a sale which Ostrov Realty Group bought two condo units in the 7,959-square-foot, 68-unit mixed-use building (RM) on 43 West 64th Street and one other property for $14.5 million from Michael Markman on August 1, 2019.
Of those four items, three were loans above $5 million totaling $133.8 million. The most recent of the three was Glenwood Management which borrowed $107.8 million from Forethought Life Insurance Company secured by the 377,564-square-foot, 235-unit rental (D7) on 1930 Broadway on June 10, 2021.

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