The Carlyle Group, RREEF and Extell Development Company have secured a $613 million construction loan for the development of two luxury residential buildings in New York City.
Washington DC-based Carlyle and New York-based Extell paid $1.8 billion (€1.1 billion) for the 13-acre tract of land, at Riverside South on Manhattan’s Upper West Side, in 2005. Carlyle’s investment in the Riverside South development was made through the firm’s $950 million Carlyle Realty Partners IV fund, which was launched in 2004.
The two buildings are located on West 62nd and West 63rd Streets, between Riverside Boulevard and Freedom Place South, and total 880,000 gross square feet. The properties, already under construction, are expected to be completed in 2010. One of the buildings will have for sale and rental units while the other will be completely rental.
The property is already 70 percent sold, having sold 437 condo units for a total value of $788 million. The financing was the largest construction loan in the US this year, according to Carlyle.
Robert Stuckey, head of Carlyle’s US real estate team, said securing the loan in the current credit environment was a “testament to the great location and success of the two residential towers.”
Deutsche Bank led the consortium of nine banks that provided the financing.