Extell offers first of its Ring buildings for sale

Sources expect the building will go for more than $30M

TRD New York /
Jun.June 10, 2014 03:37 PM

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.”

Related Articles

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

Extell lands $690M refinancing package for One Manhattan Square

Extell Development chairman Gary Barnett and One Manhattan Square (Credit: Anuja Shakya, StreetEasy)

Rent now, buy later at Extell’s One Manhattan Square

José Cuervo owner Juan Beckmann Vidal and 1010 Park Avenue (Credit: Getty Images, StreetEasy)

Mexican billionaire buys Park Ave pad for $25M amid shopping spree

From left: 241 East 73rd Street, 1514-1528 First Avenue, and Extell Development's Gary Barnett (Credit: Google Maps)

Here’s what the $10M–$20M NYC investment sales market looked like last week

Neighbors sue to block Extell’s UWS tower after city OKs amended plans

WATCH: Gary Barnett on the residential market, Brooklyn and discounts at
One Manhattan Square

Outfoxed a decade ago by Gary Barnett, Marty Burger pays $10M for Carlton House pad

Gary Barnett’s Extell gets $268M to refinance two dev sites