Development giant Extell has roped in RXR Realty to help it complete three residential projects in Manhattan, Bloomberg Business reports.
RXR will loan Extell $463.2 million dollars to complete construction on projects at 250 South Street, 500 East 14th Street, and 555 10th Avenue.
In return, RXR will receive half of the future returns on the three projects. Together the development companies have formed a joint venture to finish work on the projects.
The first of the three at 250 South Street (One Manhattan Square as it is now known) involves an 80-story building on the Lower East Side with 816 apartments. The second at 500 East 14th Street in the East Village is a rental building with 160 apartments along with 57,000 square feet of retail. The third in the Hudson Yards area at 555 10th Avenue is also a rental, but with 598 apartments.
RXR decided to partner with Extell on these projects in particular because they are not part of the high end luxury market (which is currently experiencing a temporary slowdown) and instead offer units between $1 million and $3 million such as at 250 South Street, according to Bloomberg.
Together all three projects have an estimated cost of $2 billion. Extell's most notable projects include One57 and Central Park Tower. Recently, questions were raised about whether part of One57's construction was funded by misappropriated funds.