Extell signs $340M refi with IGIS for Midtown West supertall dev site

Extell Development through the entity 46/47 Owner LLC as borrower signed a refi loan with lender IGIS Asset Management through the entity IGIS USA LLP valued at $340 million for 13 development parcels including the development building (V1) at 2 West 47th Street in Midtown West, Manhattan, development building (V1) at 10 West 47th Street in Midtown West, Manhattan, and development building (V1) at 562 5th Avenue in Midtown West, Manhattan.
The deal closed on June 28, 2024 and was recorded on July 11, 2024. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $340 million.

The refinance included $9.3 million in new debt to put the total loan back to $340 million.

The 13 properties have 192,317 square feet of built space and 399,320 square feet of additional air rights for a total buildable of 435,070 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,767 and the price per buildable square foot is $781 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 IGIS Asset Management was Nawoo Lee.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received two DOB violations, $1,250 in ECB penalties, and $12,065 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the 13 buildings received a initial certificate of occupancy in the last ten years. On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 8,632 square feet. The largest is a new building project for a 4,790 square-foot M building submitted by Roger Merriman with plans filed June 15, 2015 and it has not been permitted yet. The second largest is a new building project for a 3,842 square-foot M building submitted by Roger Merriman with plans filed June 15, 2015 and it has not been permitted yet.

The neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 3rd highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 26.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 35 percent of the neighborhood’s built space.

The block

On the tax block of 10 West 47th Street, PincusCo has identified the owners of 29 of the 41 commercial properties representing 1,034,134 square feet of the 1,198,913 square feet. The largest owner is Sol Goldman Investments, followed by Elo Realty Corp. and then Alishaev Brothers.
On the tax block, there were two new building construction projects totaling 8,632 square feet. The largest is a 4,790 square-foot mercantile (M) building submitted by Roger Merriman with plans filed June 15, 2015 and it has not been permitted yet. The second largest is a 3,842 square-foot mercantile (M) building submitted by Roger Merriman with plans filed June 15, 2015 and it has not been permitted yet.

The majority, or 78 percent of the 1.2 million square feet of built space are office buildings, with hotel 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 2,802,134 square feet and a city-determined market value of $743.2 million. (Market value is typically about 50% of actual value.) The portfolio has $6.6 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and JVP Management respectively. Within the portfolio, the bulk, or 38 percent of the 2,802,134 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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