Gary Barnett’s Extell Stays Busy in Manhattan With $40M Air Rights Deal

Look, up in the sky! It’s Gary Barnett’s Extell Development completing yet another deal in Manhattan. 

The real estate titan’s firm has paid $39.9 million to private social club Metropolitan Club to transfer 135,146 square feet of air rights from 1 East 60th Street to its 74-story development site nearby at 655 Madison Avenue, property records made public Monday show. 

Barnett signed the deal for Extell, while Robert J. Strang and Edgar H. Haug signed for Metropolitan Club. Extell and Metropolitan Club did not immediately respond to requests for comment. 

Extell closed a herculean construction loan — $1.13 billion from Tyko Capital — for its supertall skyscraper development at 655 Madison Avenue in December, in what was the largest construction loan of 2025, Commercial Observer reported at the time. The building will span 764,698 square feet and feature condo units on the higher floors, as well as office floors and a retail podium at the base. 

Luxury fashion brand Chanel will bring a new flagship store to the building’s base and have offices within the tower, which is slated for completion in 2031, according to New York YIMBY. 655 Madison Avenue and 1 East 60th Street sit half a block from each other, not far from the southeast corner of Central Park.

Barnett’s firm also acquired 123,000 square feet of air rights over Saint Thomas Church at 678 Fifth Avenue for $36 million in November.

Extell is currently in contract to acquire 405-415 Park Avenue, the Real Deal reported, as well as the air rights from Central Synagogue at 652 Lexington Avenue and the adjacent 110 East 55th Street.

Extell owns at least 67 commercial properties with 751 residential units in New York City, according to data compiled by PincusCo, at a market value of $827.4 million. 

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.