E
xtell Development is currently involved in a legal dispute regarding the construction of its Diamond District hotel. Despite this, they have secured a new partner for the project - Kimpton Hotels & Resorts. The development, which is located at 32 West 48th Street, is expected to open next year and will be known as Kimpton Rockefeller Center due to its proximity to the Rockefeller Center. Kimpton is undergoing significant expansion, with plans for 57 new projects within the next five years.

    The dispute began when Jack Elo refused to allow Extell to install safety precautions on his building, which led to an 18-inch strip of land both parties claimed ownership of. In response to this, Extell filed a lawsuit in February, demanding that a sheriff accompany their workers as they removed air conditioners encroaching on their site from Elo's property. They also sought $3 million in damages.

    Elo argued that Extell's development posed an existential threat to 10 floors of light and ventilation on his building, as numerous windows would be bricked up, potentially harming residents and lowering property values. A judge ruled in favor of Extell in April, but Elo appealed the decision the following month.

    Extell secured a $220 million construction loan from Banco Inbursa towards the end of last year. They purchased the four-story former site of the Plaza Arcade diamond mini-mall in 2018 for $40 million and acquired air rights from several adjacent properties to connect West 47th and West 48th streets.

    In other news, Extell has filed plans for a 32-story Fifth Avenue tower, which was once intended to be supertall. The building will include offices and three floors of retail space, spanning an impressive 876,000 square feet.