Sales Beat

Gem Institute Buys Additional Floor at Extell’s Diamond District Tower

50 West 47th Street.

A gem-studying institute has added an additional floor to its current operations at Extell Development’s International Gem Tower in the Diamond District, property records show.

The Gemological Institute of America paid $13 million for an office condominium on the ninth floor of 50 West 47th Street between Avenue of the Americas and Fifth Avenue. The association’s website currently lists its foothold at the 36-story tower for educational, research and laboratory purposes. Read More

Sales Beat

Thor Closes on 734 Broadway for $17M

734 Broadway.

Thor Equities closed on its purchase of 734 Broadway south of Astor Place from Extell Development for $17 million, Commercial Observer has learned. CO first reported when the contract was signed in February, but did not have a sale price.

Yesterday’s purchase of the five-story landmarked cast-iron building includes 6,500 square feet of usable retail space with 25 feet of frontage, and four floors of office space totaling 12,500 square feet. The property is currently vacant and will undergo renovations. Read More

Sales Beat

Gary Barnett Pays $115.5M to Build Resi Tower at City Point

City Point

Extell Development has paid $115.5 million for the rights to build a mixed-use tower at City Point in Downtown Brooklyn, marking the first venture for the company in the fledgling borough.

Gary Barnett, the president and founder of Extell, plans to start construction on the 665,000-square-foot tower in 2017 and hopes to finish by 2020, according to City Point developers Acadia Realty Trust and Washington Square Partners, which sold the rights to the developer. Read More

Sales Beat

Thor Picks Up Extell’s 734 Bway, Penthouse Plans TBD

734 Broadway.

Joseph Sitt‘s Thor Equities has purchased a Noho loft building from Gary Barnett‘s Extell Development, in the third such deal between the two firms in roughly the last two years, according to a source with intimate knowledge of the deal. The contract was signed last Friday.

Last May, the city’s Landmarks Preservation Commission approved plans to restore the 1872 building at 734 Broadway south of Astor Place, Curbed reported, and install a two-story penthouse on top of the five-story building. Mr. Sitt hasn’t yet determined whether or not to proceed with the addition, the source indicated. Read More


Extell, Kushner Companies Close $132M in Financing For New Jersey Purchase

Pier Village

A partnership of Extell Development and Kushner Companies closed a new take-out loan of $97 million while assuming $32 million in debt on a New Jersey multifamily building the pair purchased last November.

The duo bought Pier Village, a 492-unit mixed-use development at One Chelsea Avenue in Long Branch, for $180 million, with $51 million in bridge financing from Capital One. Now, they’ve finalized a $97 million long-term fixed-rate take-out with Fannie Mae, which retired the Capital One bridge loan, and assumed a $32 million Freddie Mac loan on the property originated by PNC Bank, according to representatives for both companies. The Freddie Mac loan was originated in mid-2013 and carries a seven-year term. Read More

Mortgage Observer

So They Say: Gary Barnett Talks One57 Highs and Lows

Gary Barnett. (Sasha Maslov)

Despite the fanfare with which Extell Development’s luxury tower One57 hit the market in December 2011, sales at the building have slowed significantly in recent months. About 25 percent of the 94 units at Extell’s condominium and hotel tower was still without buyers as of December 2014, according to published reports.

Indeed, only one unit at the 75-story skyscraper was purchased in the third quarter of 2014, Bloomberg News reported in early December. Those figures came from a filing on the Tel Aviv Stock Exchange, where Extell sells debt, according to Bloomberg. The most recently recorded sale at One57 closed at a 20 percent discount to its asking price, according to city records. That unit went into contract in October 2011 and closed on Dec. 1, 2014. Read More

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


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