Gary Barnett’s Park Avenue Expansion

Start today for only $1

Gary Barnett’s latest Midtown buying spree fits a familiar Extell playbook: quietly assemble strategic parcels, secure development rights and leave everyone guessing about the endgame.

But as deals begin to close, Barnett’s vision for a Park Avenue assemblage is beginning to come into focus. Recent acquisitions, air-rights deals and even a foreclosure filing suggest Extell is methodically expanding its footprint around the development site.

In May, Barnett’s Extell paid $500 million for the development site at 405-417 Park Avenue, the centerpiece of the assemblage.

The developer simultaneously scooped up $20 million worth of air rights from nearby Central Synagogue, boosting a project that already carries roughly 527,000 square feet of as-of-right development potential. With additional air rights, the site could support as much as 700,000 square feet of rentable office space.

The deal came just weeks after Barnett bought the former Friars Club building at 57 East 55th Street for $19 million, fueling speculation that his ambitions extend beyond the Park Avenue site itself. Extell has been linked to a potential acquisition of 111 East 54th Street, home to the private club the Brook. The five-story building is right next to the development site. Industry observers have theorized that Extell could be planning to relocate the club to the Friar’s Club building. But a longtime doorman told TRD the club has no plans to leave.

At the end of May, Barnett purchased the American Jewish Congress building at 165 East 56th Street, just two blocks from the assemblage. It doesn’t seem as though any potential air rights could be transferred due to its distance from the development site. But it’s possible Extell could have bought the building as a destination to relocate tenants from one of the other buildings.

The latest clue to Barnett’s plans emerged with a foreclosure filing against Parkoff Organization’s 110 East 55th Street, where an entity tied to construction firm JT Magen claims the owner defaulted on a loan carrying more than $40 million in outstanding principal and interest. JT Magen recently partnered with Extell on a foreclosure effort in Boston, adding another layer of intrigue to a Midtown assemblage that appears to be growing by the week.

As usual, Barnett has been tight-lipped about the acquisitions. But Extell President Andrew Chung recently revealed the full scope of Barnett’s ambitions at an office roundtable hosted by TRD. Chung recalled asking Barnett about his plans for the next five to ten years. The response, Chung said, was a single word: “Everything.”