Barnett in contract to buy Carlton House

Gary Barnett and the Helmsley Carlton House at 680 Madison Avenue

Gary Barnett’s Extell Development partnered with investment firm Angelo, Gordon to buy the Helmsley Carlton House at 680 Madison Avenue for about $170 million from the Helmsley estate, the Wall Street Journal first reported.

Barnett and Midtown-based Angelo, Gordon are together in contract to buy the 160-unit hotel and apartment building at Madison Avenue between 61st and 62nd streets, which was being marketed by CB Richard Ellis vice chairman Darcy Stacom, three sources confirmed to The Real Deal.

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According to one of the sources, the bids were due last Friday, and needed to include a signed contract and a $10 million deposit. A fourth source, speaking yesterday, said there were six bids made for the property. The retail portion of the building is considered a particularly valuable asset, insiders said.

Angelo, Gordon, one of many investors partnering with local players to purchase distressed properties in New York, declined to comment on the sale. CBRE and Extell did not immediately respond to calls for comment.

The sale was considered a test for the commercial property market. Before the sale, sources said bids were being made at about $150 million. TRD