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Dealmaker: Harbor Group Provides $90M Construction Loan in Manhattan
Harbor Group International, Norfolk, Va., provided a $90 million senior mezzanine construction loan to Extell Development Co., New York, to finance construction of 1520 First Avenue on Manhattan’s Upper East Side.
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HGI contributed to the loan financing, which totaled $425 million, alongside InterVest Capital Partners, New York, Rexmark, New York, and Pacific Western Bank, Los Angeles.
The mixed-use medical office and retail space is scheduled to deliver in 2025. Upon completion, 1520 First Avenue will include 390,000 rentable square feet of medical space; the Hospital for Special Surgery has pre-leased 196,000 square feet. The building will also include 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 HGI President Richard Litton.
The building’s location in the Upper East Side’s medical corridor is near several transit options, including the MTA 6 subway line and three MTA bus stops.
The Upper East Side contains one of the highest concentrations of hospitals in the country.