Gary Barnett is buying assets and air rights left and right this week.
Extell Development acquired air rights attached to 34 and 36 East 61st Street from Hartz Mountain Industries for $34.9 million, the Commercial Observer reported. The air rights could allow Barnett to expand plans for the proposed supertall at 655 Madison Avenue in Midtown.
Neither company responded to a request for comment from the publication.
It’s been relatively quiet on the project since the end of last year. That’s when Extell landed $1.13 billion in construction financing for the 74-story project. Adi Chugh’s Tyko Capital provided the mezzanine loan and JPMorgan provided the mortgage.
A rezoning application from July 2025 described a 765,000-square-foot project that would stand 1,162 feet tall and include 154 residential units. The residential space would span 476,000 square feet, while 233,000 square feet of commercial space would be split between office and retail, mostly the former.
Extell bought the property between East 60th and East 61st streets in October 2024 for nearly $160 million from Williams Equities. The 24-story building was last renovated in 2005 and charged office rents between $54 and $66 per square foot, according to CoStar estimates.
Last spring, luxury fashion brand Chanel was reported to be in discussions to purchase the retail space at the development, potentially paying in the mid-$400 millions for the 65,000 square feet.
It’s been a busy week for Barnett.
Extell purchased a 6,000-square-foot building at 1645 First Avenue from Jay and Stuart Podolsky for $27.9 million.
The acquisition concluded a years-long standoff, completing Barnett’s assembly of his Upper East Side development site. The property, formerly a homeless shelter, gives Extell control of the entire site as it figures out future plans.
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Gary Barnett bags $1B+ loan for 655 Madison
Extell pays $160M for Midtown East office marked for demolition
Gary Barnett finally buys out Podolsky brothers, ending years-long standoff at UES dev site
