The Feil Organization is in contract to buy Extell Development’s 251 Park Avenue South, The Real Deal has learned. The sale of the 103,000-square-foot building, one of the most coveted properties in the F.M. Ring portfolio, is expected to close for between $850 and $1,000 a foot, according to sources familiar with the transaction.
The 16-story property, located between 20th and 21st streets, is more than three-quarters vacant, according to CoStar Group data. Extell CEO Gary Barnett wrested control of the building after a long battle with Frank Ring, which included filing for partition in court and buying Michael Ring’s stake in the Ring portfolio.
Representatives for Feil and Extell couldn’t be reached for comment. Barnett has already sold the crown jewel of the portfolio, 212 Fifth Avenue, to investors including Thor Equities’ Joseph Sitt for north of $200 million.
Maharam, a fabric design company, occupies more than 20,000 square feet on the upper floors of the property, which have 16-foot ceilings. Real estate attorney Joshua Stein, who was tapped to referee the planned auction of the building last year, told TRD that the building, which has zoning flexibility, is ripe for residential condominium conversion. Feil could also choose to tap into Midtown South’s cachet with office tenants – the neighborhood’s effective rent in the third quarter was $58.66, according to CompStak.
The Feil Organization, one of the city’s oldest family-owned landlords with a sprawling $7 billion, 26 million-square-foot portfolio, is in the midst of a family feud. Jeffrey Feil, who runs the company, is being sued by his three sisters, who allege that he is not compensating them adequately for their stakes.