G
ary Barnett's Extell Development is seeking to replace a Midtown office building with a residential tower. The proposed 193,000-square-foot building at 655 Madison Avenue will feature 62 units and commercial space, according to property filings. Architect Maxwell Pau of Beyer Blinder Belle is leading the project. The existing 200,000-square-foot office building would be demolished.

    Extell purchased the property between East 60th and East 61st streets in October for nearly $160 million from Williams Equities. The acquisition was financed by Tyko Capital, backed by Elliott Investment Management. The purchase price of around $800 per square foot suggests that Barnett planned to raze the building and construct a residential development with ground-level retail.

    The 24-story office building at 655 Madison Avenue, built in 1951, was last renovated in 2005 and previously housed tenants such as Knotel. Williams Equities' Michael Cohen had mentioned in an interview that the building would likely be replaced by a mix of retail, hospitality, and residential units. The site's proximity to Central Park offers Barnett a chance to build apartments with commanding views, a formula he has employed successfully in the past to sell units for tens of millions of dollars.