Extell refis $118.2M dev site loan with Pacific Western Bank in Yorkville

Extell Development through the entity UES Commercial LLC as borrower signed a refi loan with lender Pacific Western Bank through the entity Pacific Western Bank valued at $118.2 million for the development parcel (V1) at 1524 First Avenue in Yorkville, Manhattan.
The deal closed on October 27, 2022 and was recorded on November 16, 2022. The prior lender was Helaba which held debt that had an original loan amount of $118.2 million.The property has zero square feet of built space.
The signatory for Extell Development was Marc Kwestel. The signatory for Pacific Western Bank was Kevin Rees. This is a development site.

The property

The zoning is R10A which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing.

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 received $13,125 in ECB penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Yorkville, the majority, or 60 percent of the 26.5 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Yorkville has 2 times the average sales volume among other neighborhoods with $705.4 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, Yorkville has near average amount of major developments among other neighborhoods and is the 23rd highest in Manhattan. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 14 commercial properties representing 322,305 square feet of the 459,543 square feet. The largest owner is BLDG Management, followed by Wayne Kaplan and then Caiola family.
On the tax block, there was one new building construction project filed totaling 322,838 square feet. It is a zero-unit, 322,838-square-foot B building developed by David Rothstein with plans filed November 23, 2021 and it has not been permitted yet.

the majority, or 90 percent of the 459,543 square feet of built space are elevator buildings, with specialty buildings next occupying 8 percent of the space.

The borrower

The PincusCo database currently indicates that Extell Development owned at least 89 commercial properties in New York City with 4,398,752 square feet and a city-determined market value of $1.3 billion. (Market value is typically about 50% of actual value.) The portfolio has $4.9 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and Prudential Credit Opportunities respectively. Within the portfolio, the bulk, or 29 percent of the 4,398,752 square feet of built space are rental condo properties, with specialty properties next occupying 25 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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