Extell Buys Midtown Office Building, Expanding Assemblage
Gary Barnett has closed on an office building he was long rumored to be buying for his latest Midtown assemblag
Barnett’s Extell Development bought the 73,000-square-foot building at 110 East 55th Street for $65 million from Parkoff Organization, according to property records. The office building is the latest piece of the massive development project Barnett is stitching together on Park Avenue.
In May, Barnett paid $500 million to buy the development site at 405-417 Park Avenue, which is adjacent to the 19-story Parkoff building. The company also bought air rights from the Central Synagogue for $20 million.
A few weeks later, Extell bought an office building on East 56th Street two blocks away, fueling speculation about Barnett’s broader strategy. Barnett is also said to be looking to buy a building at 111 East 54th Street, home to the private club The Brook.
Observers have speculated that the developer planned to acquire the building and relocate The Brook to the former Friars Club building at 57 East 55th Street, which Extell recently purchased for $19 million in what appeared to be a clever and calculated game of development chess.
The project has about 527,000 square feet of development as-of-right, which can grow up to 700,000 square feet of rentable office space with more air rights.
The sale comes after the Parkoff building was hit with a pre-foreclosure suit filed by a construction company that has previously partnered with Barnett. An entity tied to construction company JT Magen filed for foreclosure in May, claiming the owner defaulted on the loan and owes $40.6 million in principal and interest. The case was discontinued earlier this month.
Barnett financed the deal with a $327 million loan from JPMorgan Chase, according to property records, refinancing the original $218 million acquisition loan for the first site.
Representatives for Extell and Parkoff Organization did not immediately respond to requests for comment.
Read more
Gary Barnett’s Park Avenue puzzle
Gary Barnett buys Park Avenue dev site for $500M
Gary Barnett buys office building near massive Park Ave dev site
