The Real Deal New York

Extell sells commercial condo to Success Academy for $68M

Deal may provide the company with fresh liquidity
By Katherine Clarke | December 14, 2016 05:25PM

From left: 555 10th Avenue, Eva Moskowitz and Gary Barnett

Gary Barnett’s Extell Development, currently working to lock down financing for several of its high-profile condominium projects, has collected $67.7 million from the sale of a commercial condominium unit at its 555 10th Avenue rental tower.

Success Academy Charter Schools bought the 93,871-square-foot commercial space at the base of the 562,325-square-foot tower, according to public records filed with the city Wednesday.

The sale price equates to $721 per square foot.

The deal comes as Extell works to secure financing for its Central Park Tower project, at 217 West 57th Street. Earlier this week, the company secured a one-week extension on a $235 million land loan from Blackstone Group TRData LogoTINY for the tower, according to public disclosures made to its Israeli bondholders. Sources said the short-term of the extension may be an indication that Barnett is close to closing a financing deal.

Israeli investors have long pointed toward a prospective sale or refinancing of the 10th Avenue building as a potential source of new capital for Extell. The 52-story project comprises 478 luxury rental units and 30,000 square feet of amenities, including a rooftop pool. It’s slated to be fully occupied by the third quarter of 2017.

Success Academy, the controversial charter school network headed by Eva Moskowitz, operates 34 schools in the five boroughs, according to its website.

Extell declined to comment. Success did not immediately respond to requests for comment.