Extell Acquires Park Avenue Construction Site in $500 Million Deal

Extell Development has completed the $500 million acquisition of a block-long construction site at 405-417 Park Ave., marking the largest component of the developer’s growing Midtown assemblage. The prime Manhattan office space, situated between East 54th and East 55th streets, offers a potential rentable office capacity of up to 700,000 square feet.

The transaction involved two separate sellers — Swedish investor Corem Property Group AB, which held 417 Park Ave., and German asset manager DWS, the former owner of 405 Park Ave. In addition to the physical property, Extell secured air rights from the nearby Central Synagogue for $20 million.

The deal was brokered by a Newmark team including Adam Spies, Marcella Fasulo, and Adam Doneger, while CBRE’s Steve Siegel and a team from Fried Frank advised on the air-rights acquisition.

This strategic footprint places Extell at the heart of Midtown’s newest trophy office wave. The site is located near JPMorganChase’s 2.5-million-square-foot headquarters that’s currently under construction at 270 Park Ave. and the planned Citadel/Vornado tower at 350 Park Ave. While formal plans for the site have not been disclosed, the scale suggests a premium office or mixed-use tower intended to compete with the corridor’s modern supertalls.

This acquisition also continues a pattern of major investments for Extell in the Plaza District. And, market sources indicate the developer is also negotiating to acquire the adjacent office building at 110 E. 55th St. from the Parkoff Organization. While the status of those talks remains unconfirmed, tenants have reportedly been instructed to vacate by December.

Furthermore, Extell is currently active elsewhere in Midtown with a 29-story office and retail tower at 570 Fifth Ave. and a residential supertall development at 655 Madison Ave. By consolidating land and air rights at this Park Avenue location, Extell is positioning itself to capitalize on the continued demand for ultra-prime real estate in Manhattan’s most prestigious commercial corridor.