GTIS Partners Announces Origination of $146 million Loan to Extell Development for Upper East Side Condo Inventory : GTIS Partners LP (“GTIS”) today announced that it will be providing a $146 million inventory loan to Extell Development (“Extell”) to refinance the remaining units in The Kent, a fully completed 104-unit, 210k square foot, 30-story residential condominium tower with ground floor retail in Manhattan’s Upper East Side. The loan will be made in partnership with Blackstone Real Estate Debt Strategies. The property is located in the highly coveted Upper East Side of Manhattan on the corner of 95th Street and Third Avenue. The Upper East Side offers proximity to Midtown Manhattan and Central Park in addition to top-tier public and private schools. The property contains an extensive amenity offering, including a 55-foot indoor heated pool, fitness center, multiple lounge areas, kids play areas, outdoor lounge with fireplaces, and bike storage. The art deco-inspired design by award-winning architects Beyer Blinder Belle and acclaimed interior designer Alexandra Champalimaud is crafted with oversized windows, high ceilings, gracious floor plans, and the finest finishes.
Extell, the sponsor, is a best-in-class developer with significant experience and a reputation for delivering Class A condominium product in Manhattan and beyond. While the focus of Extell’s portfolio has been New York City, the firm also has experience in Utah, Texas, and Colorado. Since its founding in 1989, Extell’s current portfolio has grown to exceed 25 million square feet across the residential, commercial and hospitality sectors.
Rob Vahradian, Senior Managing Director at GTIS, said, “Extell has a long track record of delivering luxury condominium projects to the Manhattan market, and The Kent is no exception. Given the best-in-class design and amenities, family-focused unit layouts, and strong Upper East Side location, we expect The Kent will continue to be well received by the discerning New York buyer as the market continues its recovery.”
New York’s condominium market slowed significantly during the initial outbreak of COVID-19. By the end of 2020, however, the market had recovered ground. Fourth quarter 2020 sales were up 39% over third quarter 2020 sales according to Douglas Elliman. That strong performance has extended into 2021, with Doulas Elliman reporting January 2021 condo and co-op contracts signed up over 100% year-over-year (against pre-COVID performance).
Amit Rind, Senior Director at GTIS, added, “We are seeing promising signs in the Manhattan condo market that pent up demand, record low interest rates and the improving macroeconomic outlook are combining to drive a surge in buyer activity. We expect The Kent to benefit from these tailwinds as the fundamental picture improves.”
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