Barbara Nelson is editor of Real Estate New York

NEW YORK CITY-In effort to secure additional land for an undisclosed development in Midtown Manhattan, developer Gary Barnett of Extell Development Corp. has purchased the air rights to 130,000 sf over the Arts Student Building on West 57th Street. In the last several months, Barnett has scooped up two other properties on the same block, insiders say, to gather an assemblage of land for a development project yet to be announced.

With recent surrounding development in the area, the block could go either commercial or residential or a mixture of both, says Ken Krasnow, executive vice president, director of Trammell Crow Co. "Columbus Center has really broadened the boundaries of commercial viability there, so if that should be a commercial site it would be appealing and attractive to people. But that's not been his forte in the past. If he is doing an entire block development, I would imagine there would be some mixed-used component to it."

In October, Barnett purchased 20 West 58th St. and 221 West 57th St. the former Hard Rock Cafe building. The two buildings totaling 160,000 sf fetched $67.5 million.

On the same block last year, Investcorp and Ceebraid-Signal Corp., purchased the one-story Ritz Furs shop at 107 W. 57th Street between Sixth and Seventh avenues, as well as the transferable air rights for nearly $25 million. At that time it was reported the development company planned to demolish the building and construct a 37-story condominium tower.

Barnett's latest purchase is a Renaissance Revival building at 215 West 57th St., between Seventh Avenue and Broadway that is the home to the Arts Students League of New York. The amount of the purchase was also not disclosed and Barnett would not comment on the purchase.

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Extell Purchases Air Rights

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