Extell Development has acquired a site in Midtown East, Manhattan, for $500 million in a deal that was brokered by Newmark.
Located at 405-417 Park Avenue, the development opportunity will allow for about 527,000 square feet as-of-right, with that number increasing to as much as 700,000 if office is used with additional air rights, The Real Deal reported, citing marketing materials from Newmark.
The news outlet also reported that Extell is in negotiations to acquire a nearby building at 110 East 55th Street.
It's unclear what the full plans are for Extell if it were to acquire all three sites. CBRE, along with a Fried Frank team, advised on the air rights portion of the 405-417 Park Avenue deal.
The development site is within walking distance of JPMorgan's new headquarters at 270 Park Avenue, which spans 2.5 million square feet.
Also, in Manhattan, Extell is working on a conversion project at 655 Madison Avenue. The plans are to transform the building into a 37-story mixed-use asset that features hotel, retail, office space and 62 apartments, which was previously reported by the Commercial Observer.
In the first quarter, commercial real estate in Manhattan got off to a hot start. Investment sales in the borough reached $3.70 billion in volume across 92 transactions, marking the region's best three-month performance since 2021. By asset class, multifamily stood out the most, with sales skyrocketing by 246 percent to $1.07 billion across 44 transactions.
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