Extell’s Supertall Skyscraper at 570 Fifth Avenue Secures $340M Refinancing
Korea’s IGIS Asset Management provided the loan that includes $9.3M of new debt
By Brian Pascus July 12, 2024 11:50 am
reprints
Extell Development’s supertall vision for 570 Fifth Avenue is closer to becoming a reality.
Gary Barnett has secured $340 million to refinance its loan on 13 parcels of land for 570 Fifth Avenue, an upcoming supertall office and hotel-residential tower in Midtown Manhattan.
PincusCo. first reported news of the financing.
South Korea-based IGIS Asset Management provided the refinancing loan that includes $9.3 million of new debt on the project. Extell Executive Vice President Marc Kwestel is the signatory of the loan document, according to property records.
J.P. Morgan Chase had previously loaned $340 million in February 2020. Last year, IGIS Asset Management acquired the remaining $185 million balance on loan from J.P. Morgan Chase.
Extell first took control of the site in December 2018 in a deal with Braha Industries, while also buying up other development parcels along West 46th Street, West 47th Street and Fifth Avenue and tearing down existing buildings. CO previously reported that Extell bought the development sites at 570 and 574 Fifth Avenue from SL Green (SLG) Realty in 2015 for $125.4 million.
Barnett’s goal is to build a 78-story supertall skyscraper of more than 1 million square feet, though the final vision remains subject to New York City zoning laws. CO reported that city records showed Extell filed a zoning change request with the city to build a 78-story tower there in 2021, but the change never got full approval from the city, and it’s unclear if Extell will tweak the proposals for the development.
Plans released thus far by Extell and architect Kohn Pedersen Fox reveal a glass-encased tower with green spaces and several setbacks. The tower is expected to include residences, a hotel, Class A office space and ground-floor retail along Fifth Avenue that will house an 80,000 square-foot Ikea. The Swedish furniture firm will take a one-third stake in the building as a preferred equity partner.
Extell and Ingka, Ikea’s largest franchisee, have not disclosed the size of Inka’s investment, but a source with knowledge of the deal told CO that Ingka spent between $300 million and $500 million for the stake.
The project is expected to be completed in 2028.
Extell and IGIS did not respond to requests for comment.
Abigail Nehring contributed reporting to this article
Brian Pascus can be reached at bpascus@commercialobserver.com
