Extell signs $175M construction, refi loan with Cain Intl. for mixed-use in Yorkville
Extell Development through the entity UES Commercial LLC as borrower signed a new construction loan with lender Cain International through the entity Cain International Agent Limited valued at $175 million for the development project at 1522 First Avenue in Yorkville, Manhattan. The loan includes $55 million in new debt and about $120 million refinanced debt.
Gary Barnett’s Extell Development, on November 23, filed a permit application for construction of a 322,838-square-foot mixed-use medical building at 1522 First Avenue. The owner representative in the filing was David Rothstein of Extell.
The loan closed on November 13, 2023 and was recorded on December 6, 2023. The prior lender was Pacific Western Bank which held debt that had an original loan amount of $120.2 million.
The signatory for Extell Development was Marc Kwestel. The new construction debt is on top of $120.2 million of prior debt held by Pacific Western Bank that was assigned to Cain.
The property
The parcel has frontage of 204 feet and is 100 feet deep with a total lot size of 20,433 square feet. 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 for the past 24 months. In addition, according to city public data, the property has received one DOB violation, $12,500 in ECB penalties, and $12,940 in OATH penalties in the last year.
The neighborhood
In Yorkville, The majority, or 61 percent of the 26.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Yorkville has 2.2 times the average sales volume among other neighborhoods with $785.7 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, Yorkville has had very little major development activity relative to other neighborhoods.It had 387,162 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.
The block
On this tax block, PincusCo has identified the owners of four of the five commercial properties representing 322,305 square feet of the 459,543 square feet. The largest owner is Larry Morehead, followed by Extell Development and then Caiola Family.
On the tax block, there was one new building construction project filed totaling 322,838 square feet. It is a 322,838 square-foot business (B) building submitted by Extell Development and filed by David Rothstein with plans filed November 23, 2021 and permitted March 24, 2022.
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 65 commercial properties with 773 residential units in New York City with 2,830,410 square feet and a city-determined market value of $748.6 million. (Market value is typically about 50% of actual value.) The portfolio has $5.5 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and Prudential Credit Opportunities respectively. Within the portfolio, the bulk, or 38 percent of the 2,830,410 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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