NEW YORK — The Carlyle Group, Extell Development Co. and RREEF have secured $613 million in financing for the development of two residential buildings at Riverside South on Manhattan’s Upper West Side.
The financing is the largest construction loan in the U.S. in 2008. Deutsche Bank led the consortium of nine banks that provided the financing.
Totaling 880,000 square feet, the buildings will be located on West 62nd and West 63rd between Riverside Boulevard and Freedom Place South. The 38-story building will have sale and rental product and the 23-story building will be entirely rental product. Riverside South is a 13-ace 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 percent sold at Riverside South, as well as our highly regarded partners, Extell and RREEF,” said Robert 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,” Stuckey said.
According to Extell, the project’s location continues to attract potential buyers.
“The Upper West Side continues to be a big draw,” said Gary Barnett, president of Extell Development Co. “People seek high-end amenities in a beautiful setting, which is what the Riverside South development offers.”
Completion for the entire project is slated for the first half of 2010.