Extell Development signs $98M loan modification with New York Community Bank for retail in Upper West Side
Extell Development through the entity Belnord Retail LLC as borrower signed a refi loan with lender New York Community Bank valued at $98 million for the retail condo at 2360 Broadway in Upper West Side, Manhattan.
The deal closed on July 1, 2022 and was recorded on October 18, 2022. The prior lender was New York Community Bank which held debt that had an original loan amount of $100 million. The property has 38,508 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $2,543 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Extell Development was Marc Kwestel. The signatory for New York Community Bank was Francesco Pizzolla. This is a mortgage modification agreement. The interest rate is 4.125%. There is a prepayment penalty of 5% through June 2023, 4% through June 2024, 3% through June 2025, 2% through June 2026 and 1% through April 2027. No prepayment penalty after May 1, 2027.
The property
The 2360 Broadway parcel has a total lot size of 38,508 square feet. The city-designated market value for the property in 2022 is $18.7 million.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.
Development
For the tax lot building, it received its initial certificate of occupancy on September 16, 2016. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot. On the tax lot, the most recent condominium plan was filed by BELNORD PARTNERS LLC to create 213 residential units and 2 commercial units in a building at 2360-2376 Broadway in Upper West Side, Manhattan, called Belnord Condominium that has a $1.4 billion sellout, according to an April 1, 2016 submission to the New York State Attorney General. The principals of the original sponsor, BELNORD PARTNERS LLC, were Ziel Feldman and Diego Rico.
The neighborhood
In Upper West Side, the majority, or 59 percent of the 52.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 23 percent of the space. In sales, Upper West Side has the 4th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Upper West Side has 2.5 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Manhattan. It had 2.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.
The borrower
The PincusCo database currently indicates that Extell Development owned at least 87 commercial properties in New York City with 4,152,544 square feet and a city-determined market value of $1.1 billion. (Market value is typically about 50% of actual value.) The portfolio has $4.8 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and Prudential Credit Opportunities respectively. Within the portfolio, the bulk, or 30 percent of the 4,152,544 square feet of built space are rental condo properties, with specialty properties next occupying 27 percent of the space. The bulk, or 97 percent of the built space, is in Manhattan, with Brooklyn next at 3 percent of the space.
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