After Extell deal, Vornado gets going on 220 Central Park South

Oct.October 15, 2013 06:23 PM

Vornado Realty Trust and Extell Development have officially settled litigation over side-by-side development lots, paving the way for Vornado to start construction on a 920-foot-high, 41-story condominium tower at 220 Central Park South.

In separate statements, Vornado said it had finished assembling land and air rights at the development site with the $194 million purchase of 137,000 buildable square feet, while Extell confirmed it had sold Vornado the lot and development rights at 225 West 58th Street.

Vornado, a real estate investment trust, had previously tapped Robert A.M. Stern Architects to design 220 Central Park South. Extell is notoriously bullish on the area, with his luxury condo tower One57 at 157 West 57th Street and a planned mixed-use tower at 225 West 57th Street.

“We are thankful that our differences with Vornado have been resolved amicably,” Extell chief Gary Barnett said in a statement. “We wish them great success.”

Vornado agreed to pay $40 million to buy out 26 rent-regulated tenants in the building in December 2010, as previously reported. But Extell’s Barnett, with six years left on a garage lease beneath the building, doubled down. Vornado retaliated by handing Extell a $200 fine for violating a requirement to use the garage primarily for tenants. — Mark Maurer

Related Articles

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

Extell lands $690M refinancing package for One Manhattan Square

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

Central Park Tower and Gary Barnett

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

Gary Barnett, Central Park Tower, and the Tel Aviv Stock Exchange Bull (Credit: Wikipedia, iStock)

Extell’s Israeli bonds put on downgrade watch

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