Extell pays $103.3M to Goldmans for buildings adjacent to Lenox Hill development parcel

Extell Development through the entity East 60th Townhouses LLC paid $103.3 million to the Sol Goldman family’s Solil Management through the entity 33-39 East 60th Street LLC for the 16-unit residential elevator building (D9) at 35 East 60th Street, the three-unit mixed-use building (S9) at 37 East 60th Street, and the six-unit mixed-use building (S5) at 39 East 60th Street, adjacent buildings in Lenox Hill, Manhattan. The expected use is ground up development.
The deal closed on February 26, 2025 and was recorded on March 11, 2025. The three properties have 28,314 square feet of built space and 99,340 square feet of additional air rights for a total buildable of 127,650 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $3,647 and the price per buildable square foot is $809 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Solil Management was Jane Goldman and Luisa Little. The signatory for Extell Development was Gary Barnett . The contract date was December 18, 2024. Crain’s reported on the demolitions last week. These are likely related to the new building Extell plans for 655 Madison Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Extell Development purchased three properties in three transactions for a total of $195.5 million and sold 11 properties in 11 transactions for a total of $521.2 million over the past 24 months.
The seller Solil Management had not purchased any other properties and sold one property in one transaction for a total of $179.8 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Jane Goldman, head officer and Michael Gauthier, site manager. The business entity is 33-39 East 60th Street Llc. The three properties with a total of 28,314 square feet of built space generated revenue of $1.6 million per year or $55 per square foot. The sale price per square foot was $3,647.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation in the last year.

Development

For the tax lot buildings, one out of the three buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Lenox Hill, The bulk, or 34 percent of the 53.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 30 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $4 billion in sales volume in the last two years. For development, Lenox Hill has 2.9 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Manhattan. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On the tax block of 37 East 60th Street, PincusCo has identified the owners of nine of the 11 commercial properties representing 1,145,832 square feet of the 1,251,557 square feet. The largest owner is Hartz Mountain Industries, followed by Partyoftwo Llc and then Extell Development.
On the tax block, there was one new building construction project filed totaling 161,208 square feet. It is a 62-unit, 161,208 square-foot building submitted by Extell Development and filed by David Rothstein with plans filed November 18, 2024 and it has not been permitted yet.

The majority, or 49 percent of the 1.3 million square feet of built space are hotel buildings, with office buildings next occupying 48 percent of the space.

The seller

The PincusCo database currently indicates that Solil Management owned at least 259 commercial properties with 4,326 residential units in New York City with 8,894,932 square feet and a city-determined market value of $2.5 billion. (Market value is typically about 50% of actual value.) The portfolio has $18 million in debt, borrowed from State Farm Realty Mortgage. Within the portfolio, the bulk, or 36 percent of the 8,894,932 square feet of built space are elevator properties, with office properties next occupying 24 percent of the space. The bulk, or 70 percent of the built space, is in Manhattan, with Queens next at 15 percent of the space.

The buyer

The PincusCo database currently indicates that Extell Development owned at least 65 commercial properties with 651 residential units in New York City with 2,801,938 square feet and a city-determined market value of $789.5 million. (Market value is typically about 50% of actual value.) The portfolio has $7.1 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and JVP Management respectively. Within the portfolio, the bulk, or 38 percent of the 2,801,938 square feet of built space are specialty properties, with elevator properties next occupying 20 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Brooklyn next at 4 percent of the space.

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