Central Park Tower Refinances 50 West 66th Street Project

Central Park Tower Refinances 50 West 66th Street Project

Elena Rossi
3 min read

Extell Development Secures $1.2 Billion Loan for Central Park Tower Refinancing

Extell Development has successfully refinanced its Central Park Tower project, located at 50 West 66th Street, with a substantial $1.2 billion loan provided by JVP Management. This latest financial arrangement encompasses a transfer of at least $840 million from its previous financing, which included $800 million from Bank OZK and a $207 million mezzanine loan from JVP. The new package also incorporates mezzanine financing and future funding components.

The deal was sealed without the involvement of brokers, as Principal Anthony Shaskus of JVP Management and Extell’s Executive Vice President of Finance, Mark Kwestel, executed the agreement. Standing at a towering height of 1,500 feet, Central Park Tower is being marketed as the tallest residential building in the world, offering close to 570,000 square feet of space. The luxury development achieved noteworthy success last year, with 24 units closed at a top price of $4,620 per square foot, signaling a strong presence in Manhattan's luxury market.

Despite facing resistance from local entities and enduring a lawsuit from the City Club of New York, which alleged zoning violations and safety concerns, Extell persevered through two years of legal proceedings, ultimately prevailing in court and allowing the project to move forward. As of now, half of the condo units have been sold, with the lowest closing price reaching $4.6 million.

Key Takeaways

  • Extell Development secured a $1.2 billion loan from JVP Management for the refinancing of Central Park Tower.
  • The loan involves transferring at least $840 million from its previous financial arrangements with Bank OZK.
  • Central Park Tower, dubbed the tallest residential building globally, has sold 50% of its units.
  • The luxury units within the tower achieved a remarkable price of $4,620 per square foot, setting a precedent in Manhattan's luxury real estate market.
  • Extell triumphed over legal challenges from the City Club of New York, enabling the project's continuation.


The refinancing of Central Park Tower by Extell with the substantial $1.2 billion loan from JVP Management reflects a mutually beneficial arrangement, stabilizing project funding for both parties. This deal also translates to reduced exposure for Bank OZK and JVP, while providing Extell with enhanced financial flexibility. The ongoing sales at Central Park Tower could potentially considerably impact Manhattan's luxury real estate market, influencing competitors and property values. Extell's legal success against the City Club of New York underscores its unwavering commitment to project completion, thereby potentially setting precedents for future development disputes. This financial agreement not only strengthens Extell's immediate financial position but also has the potential to reshape the skyline and real estate dynamics of Manhattan in the long run.

Did You Know?

  • Mezzanine Financing:
    • Mezzanine financing serves as a hybrid of debt and equity financing, commonly utilized to fund the expansion of existing companies. It holds a subordinate position to pure debt but a senior status compared to equity. In this context, it forms a part of the $1.2 billion loan package, representing a riskier alternative to traditional debt yet less risky than equity.
  • Zoning Violations:
    • Zoning violations transpire when property owners or developers fail to comply with local zoning laws governing land usage in specific areas. The City Club of New York's allegations against Extell Development pertained to violations of zoning regulations, raising potential concerns about the safety and integrity of the Central Park Tower project.
  • Luxury Real Estate Market in Manhattan:
    • The luxury real estate market in Manhattan encompasses properties priced significantly higher than the average, characterized by prime locations, expansive dimensions, lavish amenities, and exclusivity. Central Park Tower exemplifies this segment, with units closing at a staggering $4,620 per square foot, setting a remarkable benchmark for luxury living in Manhattan.

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