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Extell Development Closes $530M in Financing for Downtown Brooklyn Luxury Condos

68-Story Tower Rising Atop City Point is Targeted for 2020 Completion
August 3, 2018

Extell Development Company, known for its work building some of the tallest apartment towers in Manhattan, is making a colossal entry into the downtown Brooklyn area. The firm has secured $530 million in construction financing for Brooklyn Point, a 720-foot condominium tower perched atop the City Point entertainment complex.

As part of the financing package, regional lender M&T Bank led a $425 million senior construction loan syndication and RXR provided a $105 million mezzanine loan.

The property is aiming to open in 2020 with 450 condominium units sized from studios to three-bedroom homes. Pre-sales began in March, Extell noted, with studios starting at $850,000. Almost 26 of its planned 68 floors have completed construction.

A new, wealthy demographic is driving demand for high-end product in this submarket, according to CoStar Market Analytics' downtown Brooklyn multifamily market report. The median income in downtown Brooklyn is just over $100,000 per year, one of the highest outside of Manhattan. And downtown Brooklyn’s population has grown by nearly 40 percent over the past five years, the highest rate in the New York City metro area.

There are currently nine condo projects under construction in Downtown Brooklyn, totaling 2,137 units, noted Adin Perera, a market analyst covering the New York region for CoStar. At 59 stories, this project will be taller than any existing residential properties in Downtown Brooklyn.

Extell is among the wave of developers entering downtown Brooklyn and appears to be pursuing this new demand demographic with its typical high-end flavor. The developer is used to carving out chunks of city skyline with opulent, glass-encased supertall builds.

It has already built One57, the 1,000-foot-tall luxury condominium on the stretch of West 57th Street known as Billionaire’s Row. It is also in development of Central Park Tower, another high-end residential tower on Billionaire’s Row that will reach 1,550 feet and is expected to deliver in 2020. And it is targeting a 2019 completion for One Manhattan Square, its 823-foot tall, 815-unit luxury condominium tower on the Lower East Side.

Credit: Extell Development Co.

For residents of Brooklyn Point, Extell is planning 40,000 square feet of fitness and social amenities. These include a rooftop infinity pool and wellness facility with 35-foot rock climbing wall, sauna and steam rooms.

A triple-height lounge is slated to include co-working space, a bar and wine library, and screening room, while a landscaped terrace on the ninth floor will offer a putting green, terrace bar and playground for children.

All of this sits atop City Point, a 650,000-square-foot shopping and entertainment destination that is anchored by Century 21, Target and Alamo Drafthouse Cinema, a dine-in movie theater. Other tenants include Dekalb Market food hall, the BKLYN Studios event venue and Trader Joe’s grocery store. Adjacent to City Point, developer JEMB Realty is at work on a 560-foot office tower that will span nearly 463,000 square feet of leasable space.

Diana Bell, New York City Market Reporter  CoStar Group   
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