Extell sells Midtown garage for $37M

Barnett-led firm appears to have scrapped development plans
By Konrad Putzier | June 28, 2016 12:15PM

From left: 10 West 48th Street and Gary Barnett

From left: 10 West 48th Street and Gary Barnett

Gary Barnett’s Extell Development sold a Midtown parking garage for $37.2 million, according to property records filed with the city Tuesday

The company bought the five-story building  at 10 West 48th Street for $15.1 million in 2011 and last year filed permits to demolish it, but now apparently abandoned its development plans.

The unidentified buyer is affiliated with the entity Cydonia W48 LLC. Attorney Peter Barack of Barack, Ferrazzano, Kirschbaum & Nagelberg LLP signed the deed as the LLC’s president. He declined to comment.

The new owner has the opportunity to build a 75,310-square-foot residential building on the lot as-of-right.

Extell is currently developing several high-rise buildings across Manhattan, but recently appears to have struggled to secure construction financing for some of them. The firm recently delayed the closing of a $463 million mezzanine construction loan from RXR Realty for three development projects – One Manhattan Square, 555 10th Avenue and 500 East 14th Street. According to sources, Extell had issues securing a senior loan for the projects.