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Extell Development Rings in profits

By Konrad Putzier

More than a year after taking control of the 14-building Ring Portfolio, Extell Development is raking in big bucks.
34 West 17th Street, the first building of the portfolio to hit the market last summer, has now sold for $20 million.

The price translates to an impressive $800 per s/f for the 25,000 s/f office building, pointing to a likely conversion to condos. Real estate investment firm Atkins & Breskin is the buyer. Ron Solarz of Eastern Consolidated marketed the property on behalf of Extell and procured the buyer

The deal is the latest in a veritable flurry of Ring-building sales. The Real Deal reported that Extell sold 331 Park Avenue South to Metro Loft for $39.5 million. The same firm had also bought 114 East 25th Street in December for $36.5 million. The Feil Organization is in contract to buy 251 Park Avenue South, while the Kaufman Organization bought the ground leases on four other Ring buildings.

Investors Frank and Michael Ring amassed the Midtown-South portfolio over decades, but the buildings were increasingly neglected in recent years as the brothers bickered over control of the properties.

Extell, headed by Gary Barnett, bought Frank Ring’s share of the portfolio in 2013 for $308 million — a price that now looks like a bargain.

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