Gary Barnett’s Extell Development has secured a $146 million inventory loan on its 30-story condo The Kent.
The loan comes days after the luxury apartment developer reportedly sold off a 42 percent stake in its New York rental portfolio to Scott Rechler’s RXR Realty.
The Financial Times reported Barnett was selling 750 rentals at in 555 Tenth Avenue in Hell’s Kitchen and 510 East 14th Street in the East Village for $300 million.
Neither Extell or RXR has commented on the trade, but the FT said the deal will provide an infusion of cash that will allow Extell to repay loans on its ultra-pricey portfolio.
Meanwhile, GTIS Partners said it is partnering with Blackstone Real Estate Debt Strategies to provide a $146 million inventory loan to Extell to refinance the remaining units in The Kent, the fully completed 104-unit, condo tower
“Extell has a long track record of delivering luxury condominium projects to the Manhattan market, and The Kent is no exception,” said Rob Vahradian, senior managing director at GTIS.
“Given the best-in-class design and amenities, family-focused unit layouts, and strong Upper East Side location, we expect The Kent will continue to be well received by the discerning New York buyer as the market continues its recovery.”
New York’s condominium market slowed significantly during the initial outbreak of COVID-19. By the end of 2020, however, the market had recovered some ground. Fourth quarter 2020 sales were up 39 percent over third quarter 2020 sales according to Douglas Elliman. That strong performance has extended into 2021, with Doulas Elliman reporting January 2021 condo and co-op contracts signed, up over 100 percent year-over-year (against pre-COVID performance).
Amit Rind, senior director at GTIS, added, “We are seeing promising signs in the Manhattan condo market that pent up demand, record low interest rates and the improving macroeconomic outlook are combining to drive a surge in buyer activity. We expect The Kent to benefit from these tailwinds as the fundamental picture improves.”
Manhattan’s rental market has enjoyed a COVID surge as renters have the upper hand in the market. New lease signings hit their highest number in 13 years in January — for the fourth consecutive month — albeit at reduced prices.