Extell in contract to buy LES site for $175M

With 1 million square feet of development allowed, a high-rise rental is likely

TRD New York /
Feb.February 06, 2013 04:30 PM

Gary Barnett‘s Extell Development is in contract to purchase a former Pathmark supermarket on the Lower East Side  — as The Real Deal first reported — for about $175 million, Crain’s confirmed today. The plot, at 227 Cherry Street, between Rutgers Street and Pike Slip, is zoned to allow a nearly 1 million-square-foot development, Crain’s said. The building will in all likelihood become a high-rise rental tower with both market rate and affordable apartments, according to Crain’s.

The Lower East Side is seeing rising rents and, as a result, developers are eager to get projects there in the ground, James Nelson, an investment sales broker at Massey Knakal Realty Services, told Crain’s.

“A lot of renters have been pushed to the Lower East Side in search of value as rents have risen in areas like the West Village and Tribeca,” Nelson said. “Bruce Ratner’s 8 Spruce Street is only about 10 blocks south of there and he was able to get $80 per square foot rents, which was a rate that no one thought could be achieved there just a few years ago.” [Crain’s] –Guelda Voien


Related Articles

arrow_forward_ios
One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)

Extell lands $690M refinancing package for One Manhattan Square

Extell lands $690M refinancing package for One Manhattan Square
Extell Development's Gary Barnett (Credit: Getty Images and iStock)

Chelsea residents paid Gary Barnett $11M to protect their views from a planned tower

Chelsea residents paid Gary Barnett $11M to protect their views from a planned tower
Central Park Tower

Extell just went public with Central Park Tower listings

Extell just went public with Central Park Tower listings
Extell's Gary Barnett and a rendering of 50 West 66th Street (Courtesy of Snøhetta)

Judge throws cold water on Extell’s UWS condo development

Judge throws cold water on Extell’s UWS condo development
Tel Aviv Stock Exchange bull (Wikimedia Commons)

NYC developers face downgrades on Israeli bond market

NYC developers face downgrades on Israeli bond market
Claude Wasserstein and 995 Fifth Avenue (Getty, Google Maps, Sotheby's)

Claude Wasserstein relists UES penthouse for $55M

Claude Wasserstein relists UES penthouse for $55M
Gary Barnett and Sush Torgalkar with 225 West 57th Street, 225 West 86th Street, and 169 Columbia Heights in Brooklyn (Credit: Getty Images, iStock, and CityRealty)

Torgalkar out as CEO of Extell: sources

Torgalkar out as CEO of Extell: sources
Extell Development president Gary Barnett and Kushner Companies founder Charles Kushner with a rendering The Lofts at Pier Village in New Jersey (Rendering via Extell Development)

Kushner Cos. buys Gary Barnett out of development on NJ waterfront

Kushner Cos. buys Gary Barnett out of development on NJ waterfront
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...