RXR Realty, a real estate operating and investment company, has entered into an agreement with Extell Development Company to provide $463 million of mezzanine financing for the construction of three, Class-A, residential and mixed use properties in Manhattan.
The properties include 1,778 residential units and more than 200,000 square feet of retail and other ancillary uses. Development costs for all three projects total $2 billion. They are:
555 Tenth Avenue which is located within the Hudson Yards development and includes 598 rental residential units and more than 100,000 square feet of commercial space. The development has been topped off at 52 stories and will offer first-class amenities and exceptional views to tenants.
500 E 14th Street which is located in the East Village, includes 160 rental residential units and 57,000 square feet of prime retail space.
250 South Street which is an iconic, 80-story tower with 816 condominium units and more than 100,000 square feet of amenity space. More than 80 percent of the condominium units are priced between $1 million and $3 million, which represents an affordable price point for the Manhattan new-construction market. The site will also contain a 13-story building, with 204 affordable units.
Scott Rechler, CEO and chairman of RXR Realty, said in a statement, “These are three spectacular projects that will provide much needed housing for our city’s young professionals and will certainly add to Extell’s stellar reputation as one of the city’s leading developers.”
Rechler said that Extell chairman Gary Barnett’s ability to accumulate the land for the new towers early in the market cycle had influenced his firm’s decision to partner on the projects.
“Gary showed tremendous foresight in assembling these well-located development parcels from as far back as 2011,” said Rechler.
According to Bloomberg news, once the RXR loan is repaid, Extell will collect 90 percent of the next about $800 million in cash flow from the projects, and RXR will get the other 10 percent. After that, RXR and Extell will split the cash flow evenly, the site reported.