The Real Deal New York

Extell shopping First Avenue multifamily buildings next to Gristedes site

Gary Barnett's firm bought the properties for $29M in 2014
By Katherine Clarke | November 23, 2016 01:00PM

From left: 1647-1651 First Avenue, Gary Barnett and 350 East 86st Street

From left: 1647-1651 First Avenue (credit: Google Maps), Gary Barnett and 350 East 86th Street

Gary Barnett’s Extell Development is shopping a pair of multifamily buildings at 1647-1651 First Avenue after stripping them of their air rights, sources told The Real Deal.

Extell plans to use the more than 20,000 square feet of unused air rights attached to the property for its planned tower next door at 350 East 86th Street, formerly the site of a Gristedes store.

The company bought the buildings, which total 24,000 square feet, for a combined $29 million in 2014, records show. Sources said Barnett TRData LogoTINY is seeking a hefty profit on a prospective sale, but the site is now devoid of air rights.

Combined, the buildings house 35 residential units.

A spokesperson for Extell declined to comment on marketing the property.

Extell purchased the Gristedes site for $93 million in July, securing a $54.9 million acquisition loan from Bank of the Ozarks.

The new tower is rumored to be 20 stories tall, but, so far, no official plans have been filed for the project.