Gary Barnett’s Extell Development closed on the purchase of a 39 percent stake in C&K Properties’ Midtown development site at 1710 Broadway for about $247 million, making way for a 60-story condominium-hotel tower.
Extell had agreed to team up with C&K to redevelop the site at West 54th Street, which offers 370,000 buildable square feet, as The Real Deal reported in August. The deal includes air rights divided across a total of six parcels. Some of the air rights can be transferred to Extell’s 29-story project at 54th Street and Seventh Avenue, thus making the price per buildable square foot unclear.
Plans call for C&K and Extell to construct a 60-story condo-hotel with possible ground-floor retail, the New York Post reported in November. First, the developers would demolish the existing six-story, 83,000-square-foot office building, which is home to Sean Combs’ Bad Boy Entertainment among other tenants.
Each of the air rights contracts closed, in addition to the stake in the building itself, sources told TRD.
To fund the stake acquisition, Extell will use about $51 million from a 1031 exchange, through which the development giant sold four properties in the Ring portfolio. In a span of under two years, Extell sold a total of 10 Ring buildings for more than $700 million.
Extell also secured a senior loan and mezzanine loan totaling $235 million for 1710 Broadway, according to Israeli financial newspaper, which first reported on the price and size of the stake last week. Representatives for Extell and C&K declined to comment.
A JLL team led by Yoron Cohen marketed the stake for sale. A Fried Frank team served as C&K’s legal counsel.
“He will do a great job there. The development will further transform the Broadway corridor between Columbus Circle and Times Square,” Cohen told TRD.
The corridor is bustling with activity, as Ilan Bracha’s B+B Capital and partners are in contract to buy the Brill Building at 1619 Broadway for $295 million and SL Green Realty is looking to sell the office component of 1745 Broadway for $700 million.
C&K picked up the property at 1710 Broadway in 2003 for $23 million, city records show, and bought up air rights in several transactions.