Home News Extell Lands $425M for Upper East Side Medical Tower

Extell Lands $425M for Upper East Side Medical Tower

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Rendering of 1520 First Avenue with Gary Barnett for Extell Development (Getty, Extell Development)

Extell Development’s barnstorming tour of the Upper East Side is well underway and recently funded a medical tower on First Avenue.

Gary Barnett’s company has secured a $425 million construction loan for the Commercial Observer’s 1520 First Avenue project. reportThe loan is for three years and includes two one-year extension options.

Pacific Western Bank provided senior loans. Rexmark, Harbor Group International and InterVest Capital Partners (previously he was known as Wafra Capital Partners) were in the Mezzanine position.

Extell’s plans for the site came to light last year.Burnett’s company broke ground 30 storiesa 400,000-square-foot building on a vacant lot between 79th and 80th streets.

About half of the building is pre-leased after the Special Surgery Hospital acquired 196,000 square feet on its first eight floors for doctors’ offices and other services. Extell aims to lease the high floors to other medical tenants.

Burnett estimates that the project will cost about $500 million.

Extell spent years piecing the site together, and in March 2018 it approached the 250,000-square-foot complex.

Burnett has been busy on the Upper East Side in recent months.

extel submitted a demolition plan The site has a flagship Papaya King hot dog restaurant that was still serving delicious food as of last week.

Barnett recently won big Opposed the holdout to block the planned 22-story tower at 1637 First Avenue. In September, the court ruled that Extell would not be required to renew his tenant’s rent-stable lease on his six-story walk-up on the property, and approved plans for the demolition of the building, making future It could set a precedent for holdout fights.

The developer is still resigned to a workaround at the site, and last year submitted plans that spanned both a tenant building and a mid-block property owned by the Podolski brothers, who rejected an offer from the developer.Burnett said negotiations with the Podolski brothers were over, but it was not immediately clear how the recent win would affect Extell’s plans.

— Holden Walter Warner

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