The Real Deal New York

Barnett’s Extell looks to unload leasehold on Hudson Square development site

June 22, 2011 10:40AM

Gary Barnett’s Extell Developent is looking to sell its 95-year leasehold interest in a Hudson Square development site at 68-74 Charlton Street, also known as 61-63 Vandam Street, for $45 million, Eastern Consolidated, which is marketing the opportunity, said today.

Brian Ezratty, a vice chairman at Eastern, is exclusively marketing the site on which Extell previously had plans for the construction of a 35-story, 181,000-square-foot luxury hotel.
Barnett confirmed that those plans had been dropped, but had no further comment.

The owner of the site is limited liability corporation 68 & 74 Charlton Street Company LLC , according to public records. 

In June 2009, Extell filed plans for the four-star hotel. The Lucien Lagrange-designed building was to have a plaza at its base, the New York Observer reported at the time.

“The site has the potential to be repositioned for a specific commercial, not-for-profit or institutional use,” Ezratty said.  “It could serve well as the permanent headquarters for a corporation or for use by a local school, for example.”

The 15,142-square-foot lot area could support a development of up to 181,535 square feet. The parcel comes equipped with preliminary drawings for a high-rise, luxury hotel. The 95-year triple net lease is set to expire in 2106.

The news comes less than a week after Extell defaulted on a $375 million building loan for the Upper West Side’s 213-unit Belnord rental building. The loan is now more than 30 days delinquent. — Katherine Clarke


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