Gary Barnett’s Extell Development closed on the purchase of a major development site at 405-417 Park Avenue for $500 million, according to sources familiar with the deal on May 8. The transaction also included the acquisition of air rights from Central Synagogue for $20 million. Barnett is reportedly considering buying additional adjacent buildings to expand the project.
The properties cover an entire blockfront between East 54th and East 55th streets. Swedish investor Corem Property Group AB sold 417 Park Avenue, while German asset manager DWS sold 405 Park Avenue to Extell. Both sellers and Barnett declined to comment.
Marketing materials from Newmark indicate that the assemblage can support approximately 527,000 square feet of as-of-right development or up to 700,000 square feet of rentable office space with added air rights. Adam Spies, Marcella Fasulo, and Adam Doneger of Newmark brokered the deal. CBRE’s Steve Siegel and a team from Fried Frank advised on the air rights portion.
Barnett is also in talks to acquire an adjacent office building at 110 East 55th Street, though it is unclear how far those negotiations have progressed. Tenants in that building have been told to vacate by December, according to one source. There are also reports that Barnett has plans for another nearby property at 111 East 54th Street but staff there say no sale is planned.
This latest acquisition places Extell’s site near several high-profile Midtown developments including JPMorgan Chase’s new headquarters at 270 Park Avenue and Citadel and Vornado Realty Trust’s planned tower at 350 Park Avenue. While specific plans for the new site have not been announced, its size and location suggest it could become a significant new office or mixed-use tower.
