Extell, Art Students League finalize $31M air rights deal

Sale follows last month’s dismissal of Art Students League lawsuit seeking to block the sale

TRD New York /
Aug.August 06, 2014 05:25 PM

UPDATED, 5:40 p.m., August 6: Gary Barnett’s Extell Development completed the acquisition of air and cantilever rights at 211 West 57th Street from the Art Students League of New York, paving the way for the firm’s planned 88-story Nordstrom Tower.

The $31.8 million sale, which hit property records Wednesday, followed last month’s dismissal of a lawsuit brought by more than 100 members of the Art Students League against the nonprofit, seeking to block the sale on the grounds that the purchase price was too low.

Extell is building a mixed-use, cantilevered tower at 225 West 57th Street, which is next door to the League’s landmarked building at 215 West 57th Street. In the suit, members of the League who opposed the deal claimed that the agreed-upon price of $31.8 million – which included development rights for 6,000 square feet and the right to build a 28-foot by 88-foot cantilever over the League’s building – was too low. Instead, they suggested the rights could be worth $400 million.

At the time, a spokesman for Extell noted that the plan passed by a margin of six-to-one in a vote by the League, which has more than 1,560 members.

Extell’s Nordstrom Tower will house a Nordstrom store and condos, as The Real Deal has previously reported. The Seattle-based retailer reportedly paid $102.5 million for the site of its planned Midtown store, which will occupy the first seven floors of the building.

“The transfer of air rights and rights to build a cantilever over the northwest corner of our building is complete,” Michael Volpe, a partner at Venable LLC and an attorney representing the League, told The Real Deal. In 2005, Extell paid $25 million for the bulk of the air rights, about 136,096 square feet.

Excavation at the site is already underway, and the project could become the world’s tallest residential building at 1,775 feet, including a spire that was recently revealed.


Related Articles

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

Extell lands $690M refinancing package for One Manhattan Square

Gary Barnett and 1855 Broadway (Credit: Google Maps)

Gary Barnett assembling Columbus Circle development site

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

arrow_forward_ios