Harbor Group International (HGI), a privately-owned international real estate investment and management firm, provided a $90 million senior mezzanine loan to Extell Development Company to finance the construction of a 30-story, 420,000 rentable square foot office building in Manhattan’s Upper East Side. HGI, alongside InterVest Capital Partners, Rexmark and Pacific Western Bank, contributed to the loan financing, which totaled $425 million. Construction of the mixed-use medical office and retail space is expected to be completed in 2025.
Upon completion, the building will feature more than 390,000 rentable square feet of medical space, of which 196,000 rentable square feet is pre-leased to the hospital for special surgery, an internationally renowned musculoskeletal health and surgery center. The scale and location of the site are ideal for tenants seeking trophy medical space on the Upper East Side. The property will also feature 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,” Richard Litton, president of HGI, said. “To support this demand, we are pleased to finance the development of a specialized office space designed to accommodate the unique needs of medical tenants and their patients.”