Extell signs $150M construction loan with Bank OZK for 127-unit project in Lincoln Square

36 West 66th Street (Credit - Google)

Extell Development through the entity West 66th Sponsor LLC as borrower signed a new construction loan with lender Bank OZK valued at $150 million for the 127-unit residential elevator building (D6) at 36 West 66th Street in Lincoln Square, Manhattan.
On the lot, there is one active new building construction project for a 127-unit, 505,482 square-foot R-2 building. The project was submitted by Extell Development and filed by David Rothstein with plans filed November 17, 2015 and permitted October 3, 2018.
The deal closed on June 21, 2023 and was recorded on June 30, 2023. The loan price per built square foot is $263 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 owner bought the property on March 24, 2014, for $85 million. The signatory for Extell Development was Marc Kwestel.

The property

The residential elevator building with 127 residential units in Lincoln Square has 569,468 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 195 feet and is 201 feet deep with a total lot size of 37,225 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.4 million. The most recent loan totaled $400 million and was provided by Bank OZK on February 8, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $64,900 in ECB penalties and $66,150 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of five of the eight commercial properties representing 1,100,583 square feet of the 1,219,481 square feet. The identified owner is Extell Development.
On the tax block, there was one new building construction project filed totaling 505,482 square feet. It is a 127-unit, 505,482 square-foot residential (R-2) building submitted by Extell Development and filed by David Rothstein with plans filed November 17, 2015 and permitted November 18, 2016.

The majority, or 91 percent of the 1.2 million square feet of built space are elevator buildings, with retail buildings next occupying 5 percent of the space.

The borrower

The PincusCo database currently indicates that Extell Development owned at least 65 commercial properties with 793 residential units in New York City with 2,882,560 square feet and a city-determined market value of $763.3 million. (Market value is typically about 50% of actual value.) The portfolio has $5.4 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and Prudential Credit Opportunities respectively. Within the portfolio, the bulk, or 37 percent of the 2,882,560 square feet of built space are specialty properties, with elevator properties next occupying 28 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Brooklyn next at 4 percent of the space.

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