Gary Barnett’s Extell Buying 655 Madison — Slated for Demolition — for $160M
Adi Chugh's Tyko Capital provided a $150 million acquisition loan for the purchase
By Nicholas Rizzi October 16, 2024 4:44 pm
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Extell Development picked up the 24-story office tower at 655 Madison Avenue, which is slated to be demolished, for $160 million, according to property records made public Wednesday.
Extell, led by Gary Barnett, bought the 233,323-square-foot building from Williams Equities in a deal that closed Oct. 10 but was made public Wednesday, property records show.
The sale comes after Williams Equities filed plans in August to tear down the property. While Extell’s plans for the property aren’t clear, the source said the developer plans to continue with the demolition and “build something spectacular” in its place.
Spokespeople for Extell and Tyko did not immediately respond to requests for comments. A spokesperson for Williams declined to comment.
Eastdil Secured’s Gary Phillips and Will Silverman brokered the sale and declined to comment.
The Madison Avenue office tower was built in 1951 and underwent renovations in 2005, as CO previously reported. It was once home to tenants such as flexible workspace provider Knotel and shoe store Schutz.
Michael Cohen, managing principal at Williams and president of Colliers’ tri-state region, previously told CO he planned to tear down the property, which “may result in more desirable office building, or hotels or hospitality.”
“We’ve emptied out a building in the Plaza District,” Cohen told CO in April. “SL Green had 625 Madison [Avenue], ours is a stone’s throw away at 655 Madison. We’re going to see those buildings get torn down and replaced probably by a mixture of retail, hospitality and residential. And I don’t have to tell you that all three of those uses are very desirable in the Plaza District.”
— With additional reporting by Cathy Cunningham.
Nicholas Rizzi can be reached at nrizzi@commercialobserver.com.
