The Real Deal New York

Extell offers first of its Ring buildings for sale

Sources expect the building will go for more than $30M
By Adam Pincus | June 10, 2014 03:37PM

Gary Barnett’s Extell Development is soliciting buyers for a small office building near Union Square, the first property in the 14-building Ring portfolio to hit the market since Extell took control of the portfolio last year.

Insiders familiar with the property, 34 West 17th Street, anticipate that it will sell for more than $30 million, or about $1,200 per square foot, and that it is likely to be converted to a residential condominium.

The 25,000-square-foot office building located between Fifth and Sixth avenue has just one commercial tenant remaining. That company is expected to be out by October.

The Ring brothers, along with their late father Leo, amassed the portfolio over decades. The portfolio became more and more vacant in recent years, however. Extell gained control of the portfolio last year.

The property is being exclusively listed by Ron Solarz, of Eastern Consolidated, who said he first began marketing the building last week. Extell did not immediately respond to a request for comment.

While this is the first of Extell’s Ring properties to be listed for sale, Extell has transferred control of other buildings through a ground lease. In March The Real Deal reported that Extell inked a deal with the Kaufman Organization to net lease 119-125 West 24th Street; 13-15 West 27th Street; 19-21 West 24th Street; and 45-47 West 27th Street. Kaufman began offering its first property for lease, at 125 West 24th Street in April.

In an assessment of the portfolio from 2010, the brokerage firm Cushman & Wakefield suggested the highest and best use for the building would be a condominium conversion.

Solarz declined to provide a target price, and did not want to narrow down potential uses, either.

“It is like a blank canvas,” Solarz said. “It is unusual to find something that you can get vacant and have the opportunity to create your vision.”