The Real Deal New York

Vornado, Extell bury hatchet at 220 Central Park South

October 03, 2013 04:52PM

Vornado Realty Trust and Extell Development appear to have buried the hatchet in their feud over side-by-side development lots between West 57th Street and Central Park South, and Seventh Avenue and Broadway.

Vornado’s 220 Central Park South should therefore sprout soon, just behind an Extell-owned site at 225 West 58th Street, a source in the know told Michael Gross, who reported the news on his blog.

“They made a deal,” the source told Gross, who then dispatched fellow bloggers to investigate the underground parking garage leased by Extell beneath Vornado’s property, reportedly the reason for the 220 Central Park South delay. They found the lot locked and empty, and a watchman behind the date confirmed to Gross that the spot has closed for good and will soon be no more.

Vornado, with plans to demolish and replace 220 Central Park South with a 41-story, $400 million condominium tower, agreed to pay $40 million to buy out 26 rent-regulated tenants in the building in December 2010. But Extell’s Gary Barnett, with six years left on a garage lease beneath the building, doubled down. Vornado retaliated with a $200 fine to Extell for the garage not being used primarily for residents, as was required.

Vornado is hiring Robert Stern of 15 Central Park West fame to design the new condo — a source told the blog the choice is “99 percent sure.” [Michael Gross]Julie Strickland