Extell finalizing $600M construction loan for One Manhattan Sq.
Gary Barnett's Extell Development is close to securing a $600 million senior construction loan for One Manhattan Square, following a struggle that led to delays in closing mezzanine financing for the 80-story condominium project.
A consortium of lenders led by Deutsche Bank and AIG is providing the loan for the Lower East Side project. Sources told The Real Deal that Barnett is two or three weeks away from locking in the financing.
As of market close Friday, the development giant's bonds on the Tel Aviv Stock Exchange were trading at a yield of 10.5 percent, sources said, indicating a high level of concern about the company's exposure to the New York luxury market. Since May, Extell bonds' yields have increased by 13 to 17 percent, according to Israeli financial website the Marker, which first reported on the loan Wednesday.