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.

1520 First Avenue, New York

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.