Posted Jan 3, 2011, 10:22 PM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 51,900
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Quote:
Originally Posted by NYC4Life
By the looks of things, one would assume this tower has received all the necessary funding, which of course isn't quite the case yet.
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Not yet. But Barnett is trying this method to get his projects at least started. The process here is very similar to his Diamond Tower under constrution...
Quote:
At a time when banks are reticent to finance any new buildings in the city, real-estate firm Extell Development says it will begin work on its planned 34-story International Gem Tower office building in Midtown even without a loan to finance its construction.
Developers rarely build without loans to finance construction given the high costs and risks. Banks have been particularly cautious in making such loans in the past three years, requiring landlords to have tenants committed to lease major portions of buildings at healthy rents.
Raizy Haas, a vice president at Extell in charge of the project, described the decision to move ahead as a "calculated risk," one that the firm's equity partners had agreed to fund.
Compared with typical buildings that begin construction in tough markets, that commitment level is low.
"At some point in the process, we're going to go to the banks and get a construction loan," she says. "But being able to have the commitment from the equity partners allows us to go ahead even without construction."
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It's the same process going on here, and Barnett will likely get a constrution loan, he just doesn't have it yet.
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http://therealdeal.com/newyork/artic...orthy-projects
Will Carnegie 57 take shape?
January 01, 2011
By C. J. Hughes
Quote:
Construction seems to be crawling at Extell's biggest undertaking, a 74-story Midtown tower to open in 2013 (and which could take the tallest residential building title from 8 Spruce) that's faced delays relating to loan issues.
Its address, on busy West 57th Street, may be a challenge, said Leonard Steinberg, a Prudential Douglas Elliman broker who specializes in the high-end market. Unlike 15 Central Park West, Carnegie 57 does not face the park, Steinberg pointed out, and the building's planned hotel tenant, Park Hyatt, "won't resonate as well as a Four Seasons." Plus, if a building ever arises at the former Drake Hotel site on Park Avenue -- an address with cachet -- Carnegie 57 could have stiff competition, Steinberg added. Besides, Hines has planned a 55-story tower designed by Jean Nouvel for West 53rd Street.
But one thing going for Extell, which wouldn't comment, may be that European buyers love the shopping and theater offerings in Midtown. Residents "can run across the street to Jean Georges and have dinner," Steinberg said.
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