Extell Development has acquired the 19-storey office building at 110 East 55th Street, also known as Park 55, from Parkoff Organization for $65 million after months of negotiations, according to property records released on Monday. This acquisition brings Gary Barnett, Extell's founder, closer to his goal of assembling a comprehensive development site in Midtown.
A partner entity of the construction firm JT Magen, which had previously collaborated with Extell on a foreclosure auction in Boston, had filed a pre-foreclosure lawsuit for the property in May, as reported by The Real Deal. The lawsuit alleged that Parkoff had defaulted on a loan and owed approximately $40.6 million in principal and interest. Neither Parkoff nor Extell immediately responded to requests from Commercial Observer.
It was already known in January that Gary Barnett was under contract for the property, but the sale price was not disclosed until the transaction was completed this week. With this latest acquisition, Barnett expands his company's steadily growing portfolio of properties in Midtown Manhattan.
Strategic Acquisitions in Midtown
Most recently, Extell acquired an entire block-long development site at 405-417 Park Avenue for $500 million in May, as CO previously reported. This site offers potential for over 700,000 square feet of leasable office space and had been offered for sale in August of the previous year. Additionally, Extell acquired the Friars Club building at 57 East 55th Street for $19 million at the end of April. Barnett also secured 123,000 square feet of air rights over Saint Thomas Church at 678 Fifth Avenue for $36 million last year.
Future Projects and Extensive Portfolio
The exact plans for Barnett's extensive Midtown site, which is also set to include 111 East 54th Street, are still unclear. However, the developer is already busy with several other significant projects in Manhattan. The company has a number of development projects underway in Midtown, including:
- —A 600-foot-tall office tower at 570 Fifth Avenue.
- —A 1,200-foot-tall residential tower at 77 West 66th Street.
- —A 70-storey condominium at 50 West 66th Street.
- —A 71-storey mixed-use tower at 871 Seventh Avenue, the former Wellington Hotel.
- —A 1,162-foot-tall residential skyscraper at 655 Madison Avenue.
