NEW YORK, Oct. 28, 2022 -- Harbor Group International, LLC ("HGI"), a privately-owned international real estate investment and management firm, today announced it has provided a $90 million senior mezzanine loan to Extell Development Company ("Extell") to finance the construction of 1520 First Avenue, a 30-story, 420,000 rentable square foot office building in Manhattan's Upper East Side. HGI, alongside InterVest Capital Partners, Rexmark and Pacific Western Bank, contributed to the loan financing, which totaled $425 million. Construction of the mixed-use medical office and retail space is expected to be completed in 2025.
Upon completion, the building will feature over 390,000 rentable square feet of medical space, of which 196,000 rentable square feet is pre-leased to the Hospital for Special Surgery, an internationally renowned musculoskeletal health and surgery center. The scale and location of the site are ideal for tenants seeking trophy medical space on the Upper East Side. The property will also feature ground floor and lower-level retail space.
"Across the country – especially cities with a high concentration of residents – there's an increasing need for world-class medical space," said Richard Litton, President, HGI. "To support this demand, we are pleased to finance the development of a specialized office space designed to accommodate the unique needs of medical tenants and their patients."
The building's First Avenue location in the heart of the Upper East Side's medical corridor is near several transit options, including three MTA bus stops adjacent to the property and the MTA 6 subway line within walking distance, offering both tenants and patients with convenience and accessibility. The Upper East Side contains one of the highest concentrations of hospitals in the country, positioning the property as an attractive leasing option, blocks from leading hospitals, attractions and New York's Central Park and East River.
About Harbor Group International
Harbor Group International, LLC, and its affiliates control an investment portfolio of $18 billion including 4.9 million square feet of commercial space throughout the United States and the United Kingdom and 60,000 apartment units in the United States. In addition to its corporate headquarters in Norfolk, Virginia, HGI maintains offices in New York, Baltimore, Los Angeles, and Tel Aviv.
About Extell Development Company
Extell Development Company is a globally recognized owner and developer responsible for building over 25M+ gross square feet in past and future development since the company was founded in 1989. Extell develops and manages multiple asset classes including commercial, residential, hospitality, education and mixed use. The Company will have closed $4 billion of new financings in 2022.
About InterVest Capital Partners
InterVest Capital Partners (fka Wafra Capital Partners) is an SEC registered investment adviser based in New York, focused on asset-based lending, leasing, and other structured finance verticals, as well as real estate debt and equity investments.
Rexmark is a real estate investment manager headquartered in New York City focused on debt and equity investments throughout the United States and Europe. The firm leverages its extensive real estate expertise, comprehensive market knowledge and broad network of relationships to source, underwrite and execute attractive transactions.
About Pacific Western Bank
Pacific Western Bank is a commercial bank with over $41 billion in assets headquartered in Los Angeles, California, with an executive office in Denver, Colorado. The Bank is focused on relationship-based business banking to small, middle-market, and venture-backed businesses nationwide. The Bank offers national lending products including asset-based, equipment, and real estate loans and treasury management services to established middle-market businesses on a national basis.