After Extell deal, Vornado gets going on 220 Central Park South
Vornado Realty Trust and Extell Development have officially settled litigation over side-by-side development lots, paving the way for Vornado to start construction on a 920-foot-high, 41-story condominium tower at 220 Central Park South.
In separate statements, Vornado said it had finished assembling land and air rights at the development site with the $194 million purchase of 137,000 buildable square feet, while Extell confirmed it had sold Vornado the lot and development rights at 225 West 58th Street.
Vornado, a real estate investment trust, had previously tapped Robert A.M. Stern Architects to design 220 Central Park South. Extell is notoriously bullish on the area, with his luxury condo tower One57 at 157 West 57th Street and a planned mixed-use tower at 225 West 57th Street.
“We are thankful that our differences with Vornado have been resolved amicably,” Extell chief Gary Barnett said in a statement. “We wish them great success.”
Vornado agreed to pay $40 million to buy out 26 rent-regulated tenants in the building in December 2010, as previously reported. But Extell’s Barnett, with six years left on a garage lease beneath the building, doubled down. Vornado retaliated by handing Extell a $200 fine for violating a requirement to use the garage primarily for tenants. — Mark Maurer