Extell Pays $160M For Madison Avenue Office Tower With An Eye On Luxury Condos
Extell Development has acquired a 24-story office tower on Madison Avenue that is already slated for demolition.
The firm, which is led by Gary Barnett and pioneered the luxury building boom near Central Park dubbed Billionaires' Row, spent nearly $160M to buy 655 Madison Ave., according to city property records filed Wednesday. The developer received a $150M loan for the acquisition from Tyko Capital, according to records.
Extell plans to replace the 200K SF 1950s office building with luxury housing and retail, Bloomberg reported.
Williams Equities, a nearly century-old family firm with ties to Colliers International, sold the Midtown building after filing a demolition permit for the property earlier this year.
Williams principal Michael Cohen, who is also president of the New York Tri-State region for Colliers, discussed emptying the building of office tenants before demolition in an interview with Commercial Observer in April.
“We’re going to see those buildings get torn down and replaced probably by a mixture of retail, hospitality and residential,” Cohen told CO. “And I don’t have to tell you that all three of those uses are very desirable in the Plaza District.”
Other developers are similarly weighing demolitions, as conversions can pose challenges ranging from building layout to price. Down the block, Related Cos. paid $632.5M to acquire 625 Madison Ave. from SL Green this year, and it filed demolition plans last month for an eventual luxury condo replacement.
Extell is known for shaping the New York City skyline with supertall projects on Billionaires' Row. That includes One57, which Barnett began piecing together parcels for in 1998 and completed in 2014, and Central Park Tower.
Spokespeople for Extell and Williams didn't respond to Bisnow’s requests for comment.
