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https://therealdeal.com/new-york/202...s-655-madison/

Chanel eyes $450M retail deal at Extell’s 655 Madison
Fashion brand in discussions for 65K sf

https://a4.pbase.com/o12/06/102706/1...j.IMG_9015.JPG

March 21, 2025
Holden Walter-Warner

Quote:

Gary Barnett’s luxury project at 655 Madison Avenue is a ways away from reality, but he may have already found a retail tenant willing to pay big bucks to secure its space.

Luxury fashion brand Chanel is in discussions to purchase the retail space at the Midtown Manhattan development, the Commercial Observer reported. Chanel may pay in the mid-$400 millions for the 65,000 square feet at the corner of East 60th Street and Madison Avenue.

The deal, which has not been finalized, would give the brand space on the ground floor, as well as below street level and on higher floors. The blended price of a $450 million deal would break down to $7,000 per square foot.

Outside of the large price tag, Extell Development could also benefit from the presence of Chanel as a means to help secure financing for the project.

Isn't that more than what Extell paid for the whole site including the 60th street parcels? This huge deal suggests that the tower will be pretty promising.

Quote:

Originally Posted by ChiND (Post 10394851)

Isn't that more than what Extell paid for the whole site including the 60th street parcels? This huge deal suggests that the tower will be pretty promising.

By a lot. Extell paid about $263 M for the combined site.

Related is reportedly doing something similar at 625 Madison. Either that space was spoken for, or 655 was probably just a better fit.

Quote:

Originally Posted by NYguy (Post 10394858)

By a lot. Extell paid about $263 M for the combined site.

I thought so. If Extell builds a high-quality building here, it will make an enormous amount of money. It's already ahead of the game with this retail deal.

This will probably be another 1,000-footer.

Incredible.

Quote:

Originally Posted by The New York Lion (Post 10394991)

This will probably be another 1,000-footer.

Incredible.

It might not be that tall, but I'd be thrilled with an 850' limestone masterpiece. If it is 1,000'+, then so much the better! :cheers:

Ruh roh..

https://therealdeal.com/new-york/202...of-view-fraud/

Buyer of 520 Park’s $80M penthouse sues Zeckendorfs over obscured views
Complaint seeks to rescind sale over Extell’s planned skyscraper

https://a4.pbase.com/o12/06/102706/1...D.IMG_9235.JPG

By Jake Indursky
Research by Matthew Elo
March 25, 2025

Quote:

The owner of the last penthouse to sell at 520 Park Avenue is having buyer’s remorse.

The buyer, identified as Park Ave. Condo LLC, filed a lawsuit against the property’s developers, William Lie Zeckendorf and Arthur Zeckendorf, after purchasing Unit DP-PH-63 for $78.9 million in November.

Quote:

The buyer claimed that the Zeckendorfs knew of an impending skyscraper that was “all but certain to ruin the Penthouse’s unobstructed Central Park view, the unit’s defining feature.”

The offending skyscraper comes from Extell Development’s Gary Barnett, who bought three 60th Street lots from Solil Management for $103 million earlier this month. The assemblage is next to 655 Madison Avenue, where Extell had already planned a 62-unit residential tower and commercial space.

The buyer alleges in the complaint that Extell and Solil had made “secret plans” to develop a skyscraper that covers the entire assemblage and “will tower over 520 Park Avenue.”

Quote:

The buyer alleged that the Zeckendorfs were privy to this non-public information because of “their status as part of a small circle of New York City real estate insiders,” and did not disclose it because of their desperation to offload the penthouse at a good price.

The offering plan does disclose that west-facing windows on apartments, including the original triplex, are “considered amenities that can potentially be lost,” and also includes a general disclosure that “no representation is made that future construction in the neighborhood surrounding the Property will not result in obstruction of views.”

But the buyer claimed that none of the 26 amendments to the plan included a disclosure suggesting the west-facing windows faced a “specific, existing risk of obstruction.”

Quote:

Attorneys for the Zeckendorfs in a statement dismissed the complaint.

“Our clients reject these baseless allegations as a shameless attempt to renegotiate a binding agreement,” said attorneys Terrence Oved and Darren Oved. “They fully expect the court will see this action for what it is — a transparent case of buyer’s remorse masquerading as a complaint — and readily dismiss it.”

So Gary's building clearly will be at least as tall as 520 Park, which is about 780 feet. The plaintiff hired a very, very expensive law firm, which would not have filed an action if Extell's new tower was 600 feet tall, for example. Also, the firm's Named Partner, who is an extremely illustrious lawyer, signed the Complaint.

The case is captioned as follows:

PARK AVE. CONDO LLC v. 41-45 PROPERTY OWNER, LLC, et al.

I think we have decent odds of a supertall. At least a 900-ft. tower.

They just want in at the new tower…

https://www.crainsnewyork.com/real-e...rf-development

https://a4.pbase.com/o12/06/102706/1...d.IMG_9238.png

Quote:

The 16-page complaint makes claims that the Zeckendorf brothers were desperate to unload the last sponsor unit at the $1.3 billion, 35-unit project, and the priciest of the bunch to boot, as Extell’s plans became increasingly clear.

The first move by Extell to acquire office building 655 Madison Ave. for $159 million in a deal that closed Oct. 10 didn’t ruffle any feathers, according to the complaint. “This news,” the suit says, “did not concern buyer, nor should it have.”

Indeed, at 34 stories, No. 655, which has been approved for demolition, did not seem to come with enough air rights to allow a skyscraper tall enough to overshadow 64-story 520 Park, the suit says.

So the buyer went ahead and inked a deal to purchase the five-bedroom penthouse as well as a pair of fourth-floor staff apartments, the filing says. The buyer signed a contract for the units Oct. 29 before closing Nov. 20 in an all-cash transaction, according to the city register.

But the suit alleges that the Zeckendorfs purposefully neglected to mention that Extell President Gary Barnett was at the time negotiating to buy four additional sites that could allow him to make his tower much larger. The sites, 33, 35, 37 and 39 E. 60th St., which Barnett bought from the Goldman family for $103.3 million, went into contract Dec. 18, a couple of weeks after the penthouse sale.

The Goldman sale closed Feb. 26; Barnett applied to demolish the 5-story mixed-use buildings a few days later.

doesn't 520 Park Avenue have a false facade on one side to cover the core wall? If its this side that's pretty hilarious.

looking through pictures I think that's only on the bottom levels.

Quote:

Originally Posted by Hudson11 (Post 10397780)

doesn't 520 Park Avenue have a false facade on one side to cover the core wall? If its this side that's pretty hilarious.

looking through pictures I think that's only on the bottom levels.

Even if this tower did indeed "tower over" 520 Park, most of the views from 520 aren't directly to the east anyway, and the park would still be mostly in view, judging from these floorplans and photos of an upper penthouse unit...

https://streeteasy.com/building/520-...9CwZf2zal7wyPJ

https://photos.zillowstatic.com/fp/3..._1500_800.webp

https://photos.zillowstatic.com/fp/2..._1500_800.webp

https://photos.zillowstatic.com/fp/9..._1500_800.webp

Even a tall tower at the 800 5th Ave site wouldn't block the park view...

https://photos.zillowstatic.com/fp/e..._1500_800.webp

A view west...

https://photos.zillowstatic.com/fp/a..._1500_800.webp

Sound to me like he had buyer's remorse and found an "easy" out.

https://www.bisnow.com/new-york/news...-avenue-128669

'Better Than Billionaires' Row'? Why NYC's Top Developers Are All-In On A Tiny Patch Of Madison Avenue

https://a4.pbase.com/o12/06/102706/1...bwY.sites1.jpg

March 26, 2025
Sasha Jones

Quote:

On just five blocks of Madison Avenue, a multibillion-dollar development battle is brewing.

Within a matter of months, Extell Development and Related Cos. have set in motion plans for ultra-luxury skyscrapers on the eastern corners of 60th and 59th streets. The developers are known to be aggressive, being responsible for shaping Billionaires’ Row and Hudson Yards, but their investments are just the start of the area’s rebirth.

Quote:

Extell and Related might be the earliest, biggest movers, but they are far from alone. Across the avenue, Ashkenazy Acquisition Corp. is contemplating the future of the shuttered Barneys store, a Madison Avenue staple.

A pension fund last month reportedly tapped Silverman's team at Eastdil to market 590 Madison Ave. for $1.1B.

“The location is perfect,” Ariel Property Advisors President and founder Shimon Shkury said. “Actually, I personally think the location is probably better than Billionaires’ Row, in a way.”

Quote:

The bidding war in the Plaza District was kicked off by luxury retailers on Fifth Avenue aiming to choke out competition and strengthen their brand dominance.

At the end of 2023, Prada shelled out $853M for two buildings at 720 and 724 Fifth Ave., and Kering, the parent company of Gucci and Balenciaga, splurged nearly $1B on 715-717 Fifth Ave. Rolex is also building a new 28-story headquarters and flagship at 665 Fifth, and Chanel and LVMH are reportedly going head-to-head in negotiations for 745 Fifth.

And other sales are in the works. This week, Bloomberg reported that Naftali Group entered a contract to buy 800 Fifth Ave. for more than $800M, a price and buyer that suggest a luxury condo tower could be in the works.

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On Madison Avenue's eastern flank, titans of finance have piled into offices on Park Avenue, where availability is among the lowest in the world. JPMorgan Chase and Citadel are building new towers for themselves, and private equity juggernauts are battling for whatever top-end space is left, routinely paying more than $150 per SF.

Those investments in office and retail have consolidated New York City’s high net worth individuals into what is, more or less, a single 1,000-foot radius around one small section of Madison Avenue.

Quote:

655 Madison Ave.

Starting in October, Gary Barnett’s Extell spent more than $260M to acquire the office building at 655 Madison and the adjacent buildings at 33-39 E. 60th St. The 200K SF tower is in the process of being razed, while demolition permits have been filed for four smaller buildings around the corner.

Holdover petitions to remove one resident and two restaurants, Il Mulino and Philippe Chow, were filed in civil court early last year, though a waiter at the upscale Chinese restaurant told Bisnow last week he had no knowledge — and a newfound fear — that a condo development could result in him losing his job.

Extell didn't respond to Bisnow’s request for comment but seems to be moving ahead on its Madison Avenue scheme. Plans filed before the purchases of 33-39 E. 60th describe a new 37-story mixed-use development with retail, office, hotel and residential.

Industry insiders speculate that the 37-story tower may not be the final vision.

“It's not [Barnett's] style. Based on analyzing work that he's done for so long, that just doesn't seem like what he does,” said Duane Burress, who specializes in land and air rights valuations.

A lawsuit filed this week has bolstered that hypothesis. The buyer of an $80M unit at 520 Park Ave. sued Zeckendorf Development, claiming that the penthouse was sold without warning that Extell has “secret plans” to build a skyscraper on Madison Avenue that “will tower over” and block the views of the existing 64-story building.

https://cdn.bisnow.net/fit?height=47...PdcY2xm3tvDQmw

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625 Madison Ave.

A block to the south, demolition crews donning gas masks are swarming the corner of 59th Street and Madison, where Related plans to erect a 68-story residential supertall. It is expected to yield 101 condo units, along with an array of amenities, restaurant space and two floors of retail.

“625 Madison Avenue holds a special place in Related’s history as our former corporate headquarters for nearly two decades,” a spokesperson for the firm told Bisnow in a statement. “We look forward to starting a new chapter for the building by delivering exceptional hospitality, luxury residences, and flagship retail in one of the most sought-after areas in New York City.”

https://cdn.bisnow.net/fit?height=47...40Xn9kNwrMyYBw

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Expected to be completed in 2032, Citadel CEO Ken Griffin, Vornado and Rudin have begun the approval process for 350 Park Ave., an office tower where the hedge fund has already committed to 800K SF. That site is a 10-minute walk away from Related’s site, according to Google Maps. One Vanderbilt, a fully occupied, 1.7M SF office that opened in 2020, is less than 20 minutes away.

Newly constructed condos in the area surrounding the 57th-to-61st-street corridor have an average sellout of over $4,600 per SF. Certain developments, like the Aman Residences at 730 Fifth Ave., sell for as much as $8K per SF, according to market data analysis provided by Ariel Property Advisors. The last sponsor unit at the Aman sold for $66M in January.

“If I'm working at One Vanderbilt or 550 Madison, I probably can live [nearby] in a luxury apartment building,” Shkury said. “So, I work in the best building in the world with the best people in the world. I live in the best location in the world with all of the amenities I need.”

Quote:

660 Madison Ave.

Contrasted with the pounding sounds of jackhammers, the former Barneys store at 660 Madison Ave. sits quiet. In the window of what was once a small salon, abandoned bottles of hair products remain on display, gathering dust.

The nine-story retail condo, owned by Ashkenazy, was vacated by the department chain in 2020. It was briefly occupied by a Louis Vuitton pop-up in 2022 but has otherwise remained empty. Still, the developer has clung to the space.

“Barneys is the best piece of real estate on Madison Avenue,” Ben Ashkenazy said last year. “I’ve chosen to keep it vacant for a reason, because one big retailer is going to buy it.”

An empty building could be the perfect opportunity to compete with Extell and Related — and Ashkenazy has some added motivation. He once owned the ground under 625 Madison Ave. Ashkenazy’s partner Michael Alpert previously called the land “absolutely one of the best development sites in Manhattan.”

But Ashkenazy lost the site to SL Green in August 2023 following a combative foreclosure process. Related paid $633M for the property a few months later.

Now, 660 Madison Ave. could go up against the new construction across the street, if Ashkenazy or another developer so chooses, insiders say. A new tower on the site may even be able to block views of 625 Madison, harming its value.

https://cdn.bisnow.net/fit?height=47...ezMbZBvwSTJNfs

I like this!

Quote:

…the penthouse was sold without warning that Extell has “secret plans” to build a skyscraper on Madison Avenue that “will tower over” and block the views of the existing 64-story building.

https://www.crainsnewyork.com/real-e...ent-violations

Extell takes aim at upscale restaurant tenant for failing to vacate Midtown development site

https://s3-prod.crainsnewyork.com/st...60th%20St..png

C. J. Hughes
March 28, 2025

Quote:

An upscale Midtown restaurant doesn’t seem ready to let Gary Barnett devour its home.

Philippe Chow, a 20-year fixture of 33 E. 60th St., has let a key deadline come and go without vacating the building, which Barnett, president of Extell Development Co., wants to bulldoze to make way for a tall new tower.

Quote:

According to court filings, Extell informed Chow Dec. 19, one day after it went into contract to buy the site, that the developer would terminate the restaurant’s lease March 24 and that the Chinese eatery had until that date to clear out.

But the restaurant didn’t shut down at the Monday deadline.

Quote:

Extell, which also plans to raze four surrounding properties on the block—Nos. 33, 37 and 39 E. 60th St. as well as 655 Madison Ave., all of which appear vacant—seems ready to apply maximum financial pressure to get Chow to leave.

On Wednesday, three days after the threatened closing date, Extell sued Chow’s parent, Merchant Hospitality, to recoup allegedly skipped rent payments and collect penalties for its staying on. For those supposed violations, Merchant owes Extell at least $1.4 million, plus attorney’s fees, says the suit, which was filed in Manhattan state Supreme Court.

Specifically, Merchant allegedly owes $390,000 in back rent, all of it covering months before Extell owned the property, and also $978,000 in fines for overstaying its lease, which was signed in 2005 and which was supposed to run till 2027, filings show.

I'm really curious how tall this will be in light of the recent comment re: the lawsuit that it will "tower over" 520 Park.

Hopefully, this average per square foot price of almost $5k will motivate Gary to build a landmark. He might be able to surpass that on Madison.

https://therealdeal.com/new-york/202...luxury-market/

https://nypost.com/2025/03/28/us-new...d-suit-claims/

Trendy NYC Chinese eatery Philippe Chow owes nearly $1M to UES landlord, suit claims

https://nypost.com/wp-content/upload...y=75&strip=all

By Peter Senzamici
March 28, 2025

Quote:

Billionaire’s Row building company Extell claims the high end, Upper East Side Chinese restaurant has overstayed its lease in a building they have slated for demolition — and are seeking nearly $1 million in penalties, new court papers reveal.

Extell is taking the trendy Chinese eatery to court after buying the property, and three others next door, just this month for $103 million, with plans to put up a swanky 37-story apartment tower.

The new landlord quickly turned up the heat on the renowned eatery, by filing a suit Wednesday that demands $977,000 in penalties from Philippe Chow for allegedly not vacating the location when their lease ended Monday, according to the lawsuit.

Quote:

The suit, filed against Philippe Chow owner Abraham Merchant of Merchant Hospitality, also claims Chow owes six months of unpaid rent — roughly $390,000 — and could be on the hook for hundreds of thousands more each month it remains in the location at 33 East 60th Street.

What the eatery will ultimately pay is unclear. David M. Grill, of the firm Rivkin Radler, refused to return calls seeking comment, and a communications director for the firm, Laurie Bloom, declined to comment.

In the court papers, which were filed in Manhattan Supreme Court and first reported by Crain’s, Extell claims to be entitled to four times their $61,000 monthly rent for 120 days as punishment for the restaurant not vacating the lease on time.

However, Extell also states in their filing that the “exact amount” will be determined at trial — and that Merchant could owe up to an additional $977,680, depending on when he ultimately vacates.

Merchant told The Post that the information in the suit was “inaccurate” and that they would file their response shortly. His lawyer did not respond to a request for comment.

I have to say, Extell has been on a tear lately. Anchor tenants for this tower (Chanel), the 5th Ave tower (Ikea), anchor tenant and financing for the Times Square observation hotel tower, the Wellington Hotel tower moving forward, good times for them.

Meanwhile, this guy is whining about the tower we haven't even seen yet...

https://nypost.com/2025/03/29/us-new...ell-penthouse/

Buyer shells out $80M for ritzy NYC penthouse— only to find out a new skyscraper will block stunning Central Park view

https://nypost.com/wp-content/upload...y=75&strip=all

By Kathianne Boniello
March 29, 2025

Quote:

A pair of NYC real estate titans duped a client into buying an $80 million Park Avenue penthouse with a stunning Central Park view — rushing the sale before news broke that a high-rise next door would ruin the vista, according to a lawsuit.

Arthur and William Lie Zeckendorf perpetrated “a brazen fraud” on the buyer of the five-bedroom, 6.5-half bath duplex at 520 Park Ave., the unidentified purchaser said in a Manhattan Supreme Court filing that seeks to undo the November deal.

The 8,300-square-foot Upper East Side home, complete with solarium, private elevator, balcony, and a fireplace, is billed as having “dazzling panoramic views from all four exposures,” according to a real estate listing.

Quote:

Well-heeled residents of the Park Avenue building include former UFC-owning billionaire Frank Fertitta, who bought one of the building’s four penthouse duplexes in 2017; James Dyson, the billionaire founder of the Dyson appliance company; and Bob Diamond, former head of Barclays.

The full view of the Big Apple’s iconic green space is the duplex’s “defining feature,” the buyer, identified only as Park Ave. Condo LLC, said in the legal filing.

Quote:

But a 37-story skyscraper with 62 units planned by Extell Development and Solil Management on several combined lots next door “is all but certain to ruin the Penthouse’s unobstructed Central Park view,” according to the lawsuit. It’s unclear when the new building is expected to be completed.

The Zeckendorfs learned about the new building “given their status as part of a small circle of New York City real estate insiders,” and understood “that if the public ever caught wind of the Extell-Solil development, the penthouse would never sell — and certainly not at an $80 million price tag,” the buyer alleged.

Quote:

The current buyer voiced interest in the duplex in the fall. But the Zeckendorfs failed to alert the buyers to the “specific, existing risk that the penthouse’s west-facing Central Park windows would be obscured,” the buyer said.

Instead, the building’s offering plan mentioned only that the view was an amenity “that potentially can be lost” to future construction, according to the lawsuit.

In addition to asking the court to let them ditch the penthouse, the unidentified buyer is seeking unspecified damages.

The Zeckendorfs are famed for developments such as 15 Central Park West, nicknamed “Limestone Jesus.” Current and past residents of the condo tower include Goldman Sachs CEO Lloyd Blankfein, Robert De Niro, Denzel Washington, and Alex Rodriguez.

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