Vornado, Extell bury hatchet at 220 Central Park South

Oct.October 03, 2013 04:52 PM

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

Related Articles

Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

Extell Development's Gary Barnett (Credit: Getty Images and iStock)

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

Central Park Tower and Gary Barnett

Pricey listings including UES townhouse, Central Park Tower condos go live

220 Central Park South (Credit: Google Maps)

Condo at 220 Central Park South sells for $51M

From left: L&L Holding Company's 425 Park Avenue with CEO David Levinson, Citadel Securities founder Ken Griffin, and Vornado Realty Trust’s 350 Park Avenue with CEO Steve Roth (Credit: (Photo by Michael Kovac/Getty Images; L&L Holding Company; Vornado)

Citadel Securities expands nearby lease while waiting on 425 Park

The Pennsy Food Hall 

Vornado Realty shutting Pennsy food hall amid $2B redevelopment plans

Vornado founder Steve Roth and Industrious co-founder Jamie Hodari (Credit: Getty Images)

Industrious to take 100K sf at Vornado’s One Penn Plaza