Extell pays $24.8M to Hematian, Bassalali in Midtown West, part of dev site

Extell Development through the entity 15 West 46 LLC paid $24.8 million to Anita Hematian and Adam Bassalali through the entity 15 West Hf Group LLC for the commercial building (F5) at 15 West 46th Street in Midtown West, Manhattan. The expected use is ground up development as part of Extell’s 574 Fifth Avenue tower.
The deal closed on February 4, 2025 and was recorded on February 18, 2025. The property has 25,857 square feet of built space and 8,208 square feet of additional air rights for a total buildable of 34,060 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $957 and the price per buildable square foot is $726 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 Anita Hematian and Adam Bassalali was Anita Hematian and Adam Bassalali. The signatory for Extell Development was Marc Kwestel. The contract date was June 20, 2024. The Commercial Observer reported on the transaction.

PincusCo reported in September 2024 on the Bassalali family filing demolition plans for the building. The new construction plans were filed under job number M01093960, published on September 6, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Extell Development purchased two properties in two transactions for a total of $170.8 million and sold 10 properties in 10 transactions for a total of $471.2 million over the past 24 months.
The seller Anita Hematian had not purchased any other properties and had not sold any properties over the same time period. The 25,857-square-foot property generated revenue of $1.1 million or $42 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Midtown West has 25,857 square feet of built space and 8,208 square feet of additional air rights for a total buildable of 34,060 square feet according to a PincusCo analysis of city data. The parcel has frontage of 33 feet and is 100 feet deep with a total lot size of 3,406 square feet. The zoning is C6-4.5 which allows for up to 12 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $4.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation, $3,125 in ECB penalties, and $5,275 in OATH penalties in the last year.

Development

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 Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 3rd highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 31.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 41 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 30 of the 41 commercial properties representing 1,109,142 square feet of the 1,198,913 square feet. The largest owner is Northwood Investors, followed by Extell Development and then Alishaev Brothers.
On the tax block, there were three new building construction projects totaling 761,391 square feet. The largest is a 752,759 square-foot 56 building submitted by Extell Development and filed by David Rothstein with plans filed September 6, 2024 and it has not been permitted yet. The second largest is a 4,790 square-foot mercantile (M) building submitted by Roger Merriman with plans filed June 15, 2015 and it has not been permitted yet.

The majority, or 78 percent of the 1.2 million square feet of built space are office buildings, with hotel buildings next occupying 8 percent of the space.

The buyer

The PincusCo database currently indicates that Extell Development owned at least 64 commercial properties with 651 residential units in New York City with 2,776,081 square feet and a city-determined market value of $785.3 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 39 percent of the 2,776,081 square feet of built space are specialty properties, with elevator properties next occupying 21 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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