Gary Barnett supersized his project at 655 Madison Avenue, but needed a financing package to match. Adi Chugh’s Tyko Capital delivered.
Extell Development landed $1.13 billion in construction financing for its 74-story project in Midtown Manhattan, the Commercial Observer reported. The deal, done without brokers, represents the largest construction financing package in New York City this year.
The financing closed on Monday. Tyko declined to comment to the Observer, while Extell did not return a request for comment.
Extell in July filed a rezoning application with the Department of City Planning for the site, doubling the number of stories Barnett had in mind when the firm initially filed plans last fall.
The rezoning application described a 765,000-square-foot project that would stand 1,162 feet tall and include 154 residential units. The residential space would span 476,000 square feet, while 233,000 square feet of commercial space would be split between office and retail, mostly the former.
Barnett offered to improve the Fifth Avenue/59th Street N/R/W subway station in exchange for 130,000 square feet of space. Extell also wants to transfer 135,000 square feet of development rights from the Metropolitan Club at 790 Fifth Avenue.
Without the rezoning, Extell was last considering a plan for an even taller, 84-story property, though it would have less residential and office space. That project would span 600,000 square feet with 158 residential units, which could be adjusted in either direction depending on unit size.
The estimated completion date would be in 2031.
Extell bought the property between East 60th and East 61st streets last October for nearly $160 million from Williams Equities. The 24-story building was last renovated in 2005 and charged office rents between $54 and $66 per square foot, according to CoStar estimates.
In the spring, luxury fashion brand Chanel was reported to be in discussions to purchase the retail space at the development, potentially paying in the mid-$400 millions for the 65,000 square feet.
— Holden Walter-Warner
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