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Carlyle, Extell, RREEF Obtain $613M Construction Loan— Said to be Largest to Date in 2008
Published: July 01, 2008
By Anuradha Kher, Online News Editor
New York--In a market where developers are struggling to find investors, three companies and ten banks have come together to sign the largest construction loan in the U.S. so far in 2008.
The global private equity firm The Carlyle Group, Extell Development Co. and RREEF Alternative Investments have recently secured a $613 million construction loan for the development of two luxury residential buildings at Riverside South on Manhattan’s Upper West Side.
Deutsche Bank led the consortium of nine banks that provided the financing, which was arranged by Holiday Fenoglio Fowler, L.P.
Located on West 62nd and West 63rd Streets between Riverside Boulevard and Freedom Place South, the two buildings, totaling 880,000 gross sq. ft., are already under construction and targeted for completion in the first half of 2010.
The 38-story building will have for sale as well as rental units, while the 23-story building will feature only apartments. Carlyle and Extell purchased Riverside South, a 13-acre tract of land, for $1.8 billion in 2005.
“Our ability to secure financing in this challenging market environment is testament to the great location and success of the two residential towers we’ve already built and 70 percent sold at Riverside South as well as our highly regarded partners, Extell and RREEF,” says Robert G. Stuckey, head of Carlyle’s U.S. Real Estate Team.
Since units at Riverside South began selling in 2006 they have sold 437 luxury condominium units for a total value of $788 million.
“The Upper West Side continues to be a big draw,” says Gary Barnett, president, Extell Development Co. “People seek high-end amenities in a beautiful setting, which is what the Riverside South development offers.”
Carlyle’s investment in the Riverside South development comes from Carlyle Realty Partners IV, a $950 million opportunistic real estate investment fund launched in 2004.
