E
xtell Development has acquired a Manhattan office property for $160 million, with plans to convert it into luxury housing and retail. The 200,000-square-foot tower at 655 Madison Avenue was purchased from Williams Equities, with Tyko Capital providing financing through Elliott Investment Management. The price works out to approximately $800 per square foot, a high figure for an office conversion in Manhattan.

    The building, constructed in 1951 and last renovated in 2005, previously housed office tenants including Knotel. Its office rents ranged from $54 to $66 per square foot, according to CoStar estimates. Williams Equities' Michael Cohen had hinted at the property's potential for redevelopment into retail, hospitality, and residential space.

    This deal follows a similar acquisition by Vanbarton Group, which is eyeing a residential conversion of an Archdiocese-owned office building in Sutton Place. Extell has also made headlines with its new 570 Fifth Avenue tower, where Swedish retailer Ikea will occupy 80,000 square feet of retail space and hold a one-third stake in the remainder of the building.