Extell Development’s Gary Barnett has acquired a partnership stake in a 14-building portfolio owned by brothers Michael and Frank Ring, Crain’s reported. The interest belonged to investor Joseph Tabak, and the deal could allow Barnett to force a sale of the portfolio — with himself in a favorable position to acquire it.
The estimated value of the portfolio, which is mostly vacant, exceeds $500 million. It includes buildings in the Upper West Side and Midtown South.
Barnett closed on the ownership interest yesterday, a source told Crain’s. The price was not available.
“Anyone buying that position would ultimately like to own 100 percent of the interest in those properties,” Massey Knakal Chairman Robert Knakal, who has no part in the deal, told Crain’s. “The portfolio has tremendous redevelopment opportunities and would be something that is extraordinarily sought after.”
Tabak got the stake in 2011. Michael Ring sued Tabak to void the agreement, which ended up being upheld in an arbitration ruling in 2012, Crain’s said.
Barnett already has a stake in the Rings’ 251 Park Avenue South, as previously reported. This building, located in Midtown South, is being sold at auction this August, and Barnett is expected to place a bid. [Crain's]–Zachary Kussin