Gary Barnett’s Extell Development may be in the midst of a lawsuit over the construction of its Diamond District hotel, but it picked up a partner on the project.
Kimpton Hotels & Resorts joined forces with Extell on the 33-story, 529-key project at 32 West 48th Street, the Commercial Observer reported. The development, dubbed Kimpton Rockefeller Center due to its proximity to the namesake property, is expected to open late next year.
Kimpton is in the midst of a big expansion. The IHG Hotels & Resorts subsidiary operates 75 hotels, including two in Manhattan, but has a pipeline of 57 projects expected to arrive in the next five years.
This particular project carries a whiff of contention with a neighbor. The dispute started years ago as Jack Elo refused Barnett’s attempts to install safety precautions on its building, a process interrupted by an 18-inch strip both companies claimed to own.
Extell filed a lawsuit in February demanding a sheriff accompany its workers as they removed air conditioners encroaching on the site from Elo’s adjacent property, according to the complaint. Extell additionally sought $3 million in damages.
For Elo, Extell’s development represented an existential threat to 10 floors of light and ventilation, as Elo’s building would have numerous windows bricked up, upsetting residents and potentially harming property values.
A judge ruled in favor of Extell in April, but Elo appealed the following month.
Extell landed a $220 million construction loan from Banco Inbursa towards the end of last year. Extell bought the four-story former site of the Plaza Arcade diamond mini-mall in 2018 for $40 million, then snapped up air rights from several adjacent properties in hopes of connecting West 47th and West 48th streets.
It’s been a busy week for Barnett. His firm filed plans for a 32-story Fifth Avenue tower, where a supertall was once planned. The 876,000-square-foot building at 574 Fifth Avenue will include offices and three floors of retail space.
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Development
New York
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Development
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Extell lands $220M loan for Diamond District hotel
Commercial
New York
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