Mortgage Observer

Natixis Finances Extell Upper West Side Buy for Condo Development

44 West 66th Street.

Natixis Real Estate Capital gave a $96 million loan to Gary Barnett’s Extell Development for the purchase of three parcels of land on West 66th Street—one of which is occupied by a synagogue—a person with knowledge of the deal told Mortgage Observer. The borrower has formed a joint venture for a large condominium development there.

The balance-sheet loan carries a term of 18 months with a six-month extension option and will not be securitized, the person in the know said on the condition of anonymity. The financing closed yesterday. Read More

Impending sale

Extell Nears $80M Sale of East 47th Street Site [Updated]

131-141 East 47th Street. (Masskey Knakal Realty Services marketing materials)

Gary Barnett‘s Extell Development is close to selling off a four-building site with 128,034 buildable square feet for around $80 million, Commercial Observer has learned.

The four contiguous buildings at 131-141 East 47th Street between Third and Lexington Avenues have a combined $80 million asking price, according to the Massey Knakal Realty Services marketing materials. The site includes an 11-story parking garage and three, four-story mixed-use walkup buildings. It is a ground-up mixed-use development site, which has garnered interest from hotel as well as residential developers, according to Massey Knakal’s Robert Knakal, who is marketing the properties with colleagues Clint Olsen, Jonathan Hageman, Ax Hayssen and Patrick Yannotta. Mr. Knakal expects to have a contract signed soon. Read More

Construction Beat

Extell Plans Rentals, Dorm for West Midtown

Rendering of 555 10th Avenue.

Gary Barnett‘s Extell Development has nearly completed the foundation at 555 10th Avenue and for the first time in the company’s history, has plans that include a dormitory, Commercial Observer has learned.

The 52-story, 710,907-square-foot building, which is close to 41st Street, will have 600 rental units, 120 of which will be affordable. In addition, there will be more than 300 dorm beds on floors two through seven. Mr. Barnett said he is in talks with different universities, but declined to elaborate. Read More

Wrecking Ball

Extell Looks to Raze One of Former Ring Buildings

142 West 24th Street.

Extell Development is seeking to demolish one of the Ring family buildings it acquired last year, according to Department of Buildings records.

The company, led by Gary Barnett, filed an application for a permit with the DOB yesterday. The building, at 142 West 24th Street between Avenue of the Americas and Seventh Avenue, is a 12-story, 70,000-square-foot structure which was erected in 1920. Read More

The Sit-Down

Ring Cycle: The Kaufman Organization’s Grant Greenspan on the Ring Portfolio

Grant Greenspan of The Kaufman Organization. (Mike Nagle)

The Ring Portfolio, a collection of largely vacant buildings in Midtown South and subject of a fiercely contested legal battle, was earlier this year turned over to Gary Barnett’s Extell Development. The properties, in varying states of disrepair, represent nearly 1 million square feet of space, all in the middle of New York City’s most popular submarket. In April, Extell traded four of the Ring buildings to the Kaufman Organization via 99-year net-lease deals. The agreement left Kaufman with the significant responsibility of renovating and leasing the properties. One of them, 119-125 West 24th Street, is already on the market, while the other three undergo wholesale repositioning. Last week, Grant Greenspan, a principal with the Kaufman Organization, spoke with Commercial Observer about the acquisition process and the challenges ahead.  Read More

On the Market

Former Ring Portfolio Property Now Leasing

119-125 West 24th Street. (PropertyShark)

Space at The Kaufman Organization’s 119-125 West 24th Street, formerly part of the Ring portfolio, is now available for lease, Commercial Observer has learned. Average asking rent for space in the vacant 12-story building is $67 per square foot.

For tenants occupying 40,000 square feet or more, the landlord will offer naming rights, complete with a separate lobby. A former freight elevator lobby has been converted into a second lobby for that purpose. Read More

In Negotiations

Extell Inches Toward Deal to Sell Kaufman Four Ground Leases

119-125 West 24th Street

As soon as next week, Gary Barnett’s Extell Development is slated to sign a contract to sell the long-term ground leases on four Ring portfolio office buildings to the Kaufman Organization, Commercial Observer has learned.

The $150 million deal, to be sealed next week or the week afterward, will include 119-125 West 24th Street, 13-15 West 27th Street, 19-21 West 24th Street and 45-47 West 27th Street, a source with knowledge of the deal said.  Read More

Controversies

Lawyer Claims One57 Fire Caused Back Injury, ‘Respiratory Pain’

manhattan-24-12-13-13

One57 was on fire over the weekend – literally. The fire reportedly started on a loading dock at the luxury residential tower on Saturday night and was brought under control around 10 p.m., but not before nearby resident and lawyer Michael Hurwitz prepared a lawsuit filed with the state Supreme Court against Extell Development.    

“The whole area was in a blazing fire,” Mr. Hurwitz told Luxury Listings NYC. “It was a very close call … it was 100 percent unacceptable what was going on there.” Read More

Sales Beat

Vornado Resolves Extell Dispute, Will Build Luxury Condo at 220 Central Park South

220 Central Park South

Vornado Realty Trust has acquired the land and air rights necessary to proceed with its development at 220 Central Park South, the real estate investment trust announced yesterday.

The $194 million acquisition will allow Vornado to begin construction of its planned 920-foot tall luxury residential condominium and puts to rest an ongoing dispute between the REIT and Extell Development, the seller of the rights. Read More