The Carlyle Group, Extell Development Company and RREEF Alternative Investments Secure $613 Million Construction Financing to Develop Two Luxury Residential Buildings on Manhattan’s Upper West Side;Financing is Largest Construction Loan in United States i
New York - Global private equity firm The Carlyle Group, Extell Development Company and RREEF today announced that they have secured a $613 million construction loan for the development of two luxury residential buildings at Riverside South on Manhattan’s Upper West Side. Deutsche Bank led the consortium of nine banks that provided the financing, which was arranged by Holiday Fenoglio Fowler, L.P. This is the largest construction loan secured in the U.S. in 2008.
Located on West 62nd and West 63rd Streets between Riverside Boulevard and Freedom Place South, the two buildings, totaling 880,000 gross square feet, are already under construction and targeted for completion in the first half of 2010. The 38-story building will have for sale and rental product, while the 23-story building will be entirely rental product. Riverside South is a 13-acre tract of land purchased by Carlyle and Extell for $1.8 billion in 2005.
“Our ability to secure financing in this challenging market environment is testament to the great location and success of the two residential towers we’ve already built and 70% sold at Riverside South as well as our highly regarded partners, Extell and RREEF,” said Robert G. Stuckey, Head of Carlyle’s U.S. Real Estate Team. “Since we began selling units at Riverside South in 2006 we have sold 437 luxury condominium units for a total value of $788 million.”
“The Upper West Side continues to be a big draw,” said Gary Barnett, President, Extell Development Company. “People seek high-end amenities in a beautiful setting, which is what the Riverside South development offers.”
Carlyle’s investment in the Riverside South development comes from Carlyle Realty Partners IV, a $950 million opportunistic real estate investment fund launched in 2004. Carlyle Realty has offices located in Washington, DC; New York City; Denver; and Los Angeles.
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Extell Development Company
Nationally acclaimed real estate developer, Extell Development consistently exceeds market expectations and delivers the dream behind each project. Respected by the world's leading architects and distinguished by innovative thinking, each property is meticulously designed, offering exceptional floor plans, finishes, and amenities. Extell has restored and updated a number of classics in some of Manhattan's most celebrated landmark neighborhoods, including the master renovation of The Stanhope at 995 Fifth Avenue; Altair 18 and Altair 20, located in the historic Ladies Mile downtown district; 31 West 11 Street in the heart of Greenwich Village and The Belnord, a landmark residential building on the Upper West Side. Extell's impressive New York portfolio includes The Rushmore and Avery, the first of several residential buildings planned for Riverside South, a vibrant new Upper West Side neighborhood that fronts a 21 acre park stretching along the Hudson River; The Lucida, a new vision for modern green living on the Upper East Side; Ariel East and West, two exquisite glass towers in the West 90's; and the Orion, one of Manhattan's tallest residential buildings.
RREEF Alternative Investments
RREEF Alternative Investments is the global alternative investment management business of Deutsche Bank’s Asset Management division. RREEF Alternative Investments consists of three businesses: Real Estate, Infrastructure and Private Equity. Headquartered in New York, RREEF Alternative Investments employs more than 1,400 investment professionals in 17 cities around the world to help investors meet a wide range of objectives – from diversification, to preservation of capital, to long-term performance. Named one of the world’s largest alternative investments manager in Global Investor/Watson Wyatt’s Alternative Survey, June 2008, RREEF has €55.6/$88.1 billion in assets under management worldwide as of 31 March 2008.
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