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NEW YORK CITY-The Carlyle Group, Extell Development Co. and RREEF have secured a $613 million construction loan for the development of two luxury residential buildings at Riverside South on Manhattan’s Upper West Side. Located on West 62nd and West 63rd streets between Riverside Boulevard and Freedom Place South, the two buildings, totaling 880,000 gross sf, are already under construction and targeted for completion in the first half of 2010.

Deutsche Bank led the consortium of nine banks that provided the financing, which was arranged by Holiday Fenoglio Fowler LP. A company spokesperson could not further provide details on the nine banks or provide further information.

The 38-story building will have for sale and rental product, while the 23-story building will be entirely rental product. Riverside South is a 13-acre tract of land purchased by Carlyle and Extell for $1.8 billion in 2005, as GlobeSt.com previously reported.

A source close to the deal says that it was difficult to get financing in today’s market as lenders are more discerning. “Our ability to secure financing in this challenging market environment is testament to the great location and success of the two residential towers we’ve already built and 70% sold at Riverside South as well as our highly regarded partners, Extell and RREEF,” says Robert Stuckey, head of Carlyle’s US Real Estate Team. “Since we began selling units at Riverside South in 2006 we have sold 437 luxury condominium units for a total value of $788 million.”

Carlyle’s investment in the Riverside South development comes from Carlyle Realty Partners IV, a $950 million opportunistic real estate investment fund launched in 2004. Gary Barnett, president of Extell, says in a prepared statement that “the Upper West Side continues to be a big draw. People seek high-end amenities in a beautiful setting, which is what the Riverside South development offers.”

Riverside South is a 75-acre neighborhood emerging along the waterfront on Manhattan’s Upper West Side. The neighborhood will include more than 10,000 new homes, retail plazas, restaurants, additional parking and roads as well as 27.5 rezoned acres dedicated to Riverside Park South. Riverside Park South, designed by landscape architect Thomas Balsley, spans from 62nd to 72nd street connecting Riverside Park with Hudson River Park.

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