Extell Closes on $700M Construction Loan

Extell Closes on $700M construction loan; Phoenix Realty Group purchases a 253-unit community; and California Landmark breaks ground on a mixed-use development.

One57

New York — Extell Development Company announced it has closed on a $700 million construction loan from a tier 1 lender syndicate led by Bank of America and consisting of Bank of America, N.A., Banco Santander, S.A., New York Branch, Abu Dhabi International Bank and Capital One, National Association for One57, which will be New York City’s tallest residential tower when completed. The Bank of Nova Scotia also participated in the loan.

The 90-story mixed-use development is located at 157 West 57th Street, between 6th and 7th Avenues and across from Carnegie Hall. When complete, the tower will top out at over 1,000 feet.

“This loan reflects the confidence that the Bank of America syndicate has in this exceptional development,” stated Gary Barnett, founder and president of Extell, who noted that One57’s world-class location, amenities, and striking design will create an unprecedented level of luxury living in the heart of Manhattan.

Bank of America will act as Administrative Agent for the loan that will finance a portion of the $1.4 billion project, which broke ground earlier this year and whose concrete superstructure has reached the 44th floor.

“Bank of America is excited to work with Extell to help make One57 a reality,” said Steve Kenny, Commercial Real Estate Banking executive for New York and New Jersey. “This mixed-use development is an excellent example of the type of project Bank of America is committed to as one of New York’s leading commercial real estate lenders.”

Designed by 1994 Pritzker Prize winner Christian de Portzamparc with interiors by Thomas Juul-Hansen, One57 will house 95 luxury condominiums beginning on floor 39, above Park Hyatt’s new 210-key flagship hotel, a new luxury brand featuring extraordinary amenities that will include premier meeting facilities, event space, lavish spa, fitness center and indoor swimming pool.

Phoenix Realty Group acquires $29M community in California

Upland, Calif.—Phoenix Realty Group has acquired Portofino on the Park Apartments, a 253-unit community located in Upland, Calif. The sales price was $29 million, which represents $114,624 per unit. Phoenix plans to implement a $2.8 million improvement package over the next two years.

“Portofino on the Park offers quality rental housing in one of the nation’s largest industrial markets,” says Edward Ratinoff, managing director and head of national acquisitions at Phoenix. “It’s an area on the forefront of the economic recovery because new jobs are being created in manufacturing and warehousing.”

The 1976 built community consists of 32 buildings situated on 11 acres. Common amenities include two pools, a spa, fitness center, clubhouse, playground and picnic area.

California Landmark breaks ground on L.A. mixed-use development

Los Angeles—California Landmark, a development and investment company based in southern California, has broken ground on the bw, a 78-unit apartment complex being built on the long dormant northeast corner of Wilshire and Barrington in West Los Angeles. A six-story glass façade will house both apartments and retail.

“We are excited to deliver and attractive mixed-use project in Brentwood that aligns with our long-term corporate vision,” says Ken Kahan, president of California Landmark. “The bw caters to the community’s housing needs on the Westside along a main transportation corridor, enabling people to live closer to where they work.”

An opening date is expected for August 2013. The community will feature one- and two-bedroom units ranging in size from 7,00 to 1,300 square feet, with rents expected to range from $2,200 to $4,000. Community amenities will include a rooftop garden, modernist lobby and full-service gym.