RXR TRData LogoTINY agreed to provide the funds on top of the $300 million it already provided for the project in August, according to filings on the Israeli bond market. With the new financing from RXR, EB-5 funding and a senior loan from a consortium led by Deutsche Bank and Natixis, the project, slated to cost $1.4 billion, is now 100 percent financed, Extell said in the filings.
The deal marks a successful end to a long and difficult quest for Extell’s Gary Barnett, who had to secure financing for the project amid a hostile construction lending market.
RXR had agreed in March 2016 to provide $463 million in loans, but later reduced that to $300 million after there were delays in making a deal for the senior debt. As a result, the interest rate on RXR’s loan also jumped from 7 percent to 8 percent.