The Real Deal New York

Barnett bails on another project, selling 58th St. site for $62M

Buyer is Stanley Wasserman’s S.W. Management

August 08, 2016 12:55PM
By Katherine Clarke and Will Parker

Gary Barnett and 134 West 58th

From left: Gary Barnett and 134 West 58th Street in Midtown

Gary Barnett’s Extell Development has called time on plans for yet another new development project.

The company sold a site at 134 West 58th Street to Stanley Wasserman’s S.W. Management for $61.5 million, according to public records filed with the city Monday. Barnett had been planning a 41-unit, 18-story residential building on the site.

The project is the latest which Barnett TRData LogoTINY has pulled the plug on this summer. Extell also sold a Midtown parking garage at 10 West 48th Street for $37.2 million, according to property records filed with the city.

The company is also looking to sell a site at 30-32 East 29th Street with 135,000 buildable square feet, The Real Deal recently reported.

An Extell affiliate bought the 58th Street site, which is home to a 15-story, 121-unit rental building, for $39 million in 2008, records show.

Barnett did not immediately respond to a request for comment on his reasons for selling. It was not clear what Wasserman plans for the site.

The mass sell-off comes amid a push by Extell to raise financing for two of its most ambitious projects yet, one of which is Central Park Tower, a $4.4 billion supertall that skeptics have said will have trouble getting funded this cycle. But Extell appears to have found a capital partner for the project, at 217 West 57th Street, in SMI USA, the U.S. subsidiary of Shanghai Municipal Investment, the largest state-owned enterprise in Shanghai.

The company is also looking to raise money for an 815-unit Lower East Side tower known as One Manhattan Square.  Investors in Extell’s bonds on the Tel Aviv Stock Exchange have also reportedly expressed concern about the company’s exposure to the faltering luxury market in Manhattan.

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