Helaba provides $125 million loan for Extell’s UES Resi tower project
Gary Barnettit is Extell Development took on $125 million in debt to refinance a planned Upper East Side residential tower project that faced legal hurdles, according to property records filed Thursday night.
German commercial bank lender Helaba provided the loan on the 10-lot Barnett site where it plans a 22-story, 459-unit luxury apartment building to 1637 First Avenue between East 85th and East 86th streets. Helaba also provided financing of $118.2 million in 2018 to Extell for the purchase of land and development rights, The Real Deal reported at the time.
The Extell project has encountered legal challenges due to tenant reluctance at two properties on the large development site, which has created an obstacle for Extell to acquire and demolish buildings for the assembly of the project. The developer deposit permit plans in November for an L-shaped design of the SLCE Architects-building designed as a workaround to the tenant retention problem, according to TRD.
The development will include both market priced apartments and affordable housing. It will also include a 30-foot-long backyard and retail space on the ground floor.
Extell and Helaba officials did not immediately respond to requests for comment.
Andrew Coen can be reached at [email protected].