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’

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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

Masters of Real Estate

Developers Optimistic at 5th Annual Masters of Real Estate Conference Despite Political Uncertainty

The New York Observer- Masters of Real Estate

There’s “something major” happening in every submarket in the city, but will gridlock in Washington and the impending mayoral election thrust the city back into recession – or even into a backdrop of crime and bankruptcy reminiscent of the 1970’s?

Not a chance, said a group of the city’s top real estate developers at Observer Read More

Mortgage Observer

New York City Hotels Are Booming, But Beware Overexposure

Illustration by Lauren Draper.

With more than 52 million visitors to the Big Apple in 2012, one thing seems certain: By all accounts, the hospitality industry is thriving in New York City. Hundreds of new hotels, with nearly 20,000 rooms, have joined the inventory over the past few years. Despite this, according to some industry leaders, there is reason to feel uneasy about the outlook for continued growth in this asset class.

Read More

Sales Beat

Auction Date for 251 Park Avenue South Postponed Until October

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The auction to settle a dispute over 251 Park Avenue South, which is jointly owned by F.M. Ring Associates and Extell Development, has been postponed until October 9. The fate of the building had previously been set to be decided on August 28.

“A typical reason [for the postponement] would be that the parties are having settlement negotiations,” Joshua Stein, court appointed referee, told The Commercial Observer, adding he had no specific knowledge of the reason for the postponement, which was first reported earlier this week by the New York Post. Read More

Sales Beat

Nordstrom Pays $102.5 M. for Midtown Flagship

(Photo: nuancemarketing.net)

Seattle-based luxury retailer Nordstrom has reportedly paid $102.5 million for the site of its future Midtown flagship store at 225 West 57th Street.

The seven floor store will anchor a massive 88-story, 1,550-foot residential condo tower that Extell Development is building at the site.

The retailer said its store will encompass 285,000 square feet when it Read More

Controversies

Neighbors Fume Over One57 Permit

(Photo: Al Barbarino)

Neighbors of One57 are reportedly fuming around-the-clock after the Department of Buildings granted Extell Development a 24-hour work permit.

Residents are lashing out over a permit that allows Extell to run an exterior elevator and work on its crane through August 18, which is the latest of more than 300 such variances issued over the last year, Read More

Financing

Gary Barnett Seeks $1B Loan from Chinese Bank

Gary Barnett

Gary Barnett, founder of Extell Development, is seeking approximately $1 billion in financing from Export-Import Bank of China for the planned condominium development at 225 West 57th Street, The Wall Street Journal reported earlier today.

If the deal is closed, it would likely be the largest loan for a U.S. real estate construction project since the market downturn, according to the Journal report. The project, as designed, would be the largest residential building in the United States, rising just a block away from Extell’s soon to be completed One57 residential tower.  Last year, Nordstrom agreed to anchor the development with its first New York flagship location. Read More

Sales Beat

Extell Sells Hudson Square Development Leasehold for $52 M.

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Extell Development has sold a 90 percent stake in a commercial development site at 68-74 Charlton Street for $52 million to investment firm Angelo, Gordon & Co., raking in $7 million more than originally sought, according to published reports and city records.

Extell, which originally intended to build a 35-story, 181,000-square-foot luxury hotel at the site, Read More

Sales Beat

Upper West Side Residential Towers Sell for Record-Breaking $400 M.

(Credit: GID)

A joint venture led by The Carlyle Group has sold two newly-developed residential towers on the Upper West Side for a reported $400 million to the California Public Employees’ Retirement System.

Completed in 2010, the The Aldyn and The Ashley, 38 and 23 stories-high, respectively, include a mix of rental and condominiums for a total of 345 units and a mixture of studio, one-, two-, three-and four-bedrooms that average roughly 1,000 square feet.

The Sacramento-based pension fund, also known as Calpers, made the purchase through Boston-based GID Investment Advisers LLC, its real estate manager for residential transactions.

“The Ashley and Aldyn provide GID an opportunity to expand our exposure in New York City in a single transaction,” said Bill Chiasson, senior vice president and director of eastern region acquisitions for GID, in a statement.  “Manhattan is a market that has historically provided consistent revenue growth versus the national average and where valuations hold up better over time versus other core, U.S. markets.” Read More