Extell pays $450.8M to Corem, DWS, others, for Midtown East dev site, reported at $500M

Extell Development paid $450.8 million to Corem Property Group, GDSNY, DWS Group and MRP Realty, in two transactions for the two-parcel development site making up the block front on the east side of Park Avenue between 54th and 55th streets in Midtown East. The sale price for the properties has been consistently reported as $500 million. It’s unclear if the difference includes the approximately $20 million in air rights Extell contracted to purchase from the Central Synagogue at 652 Lexington Avenue or other properties.

Extell financed the purchase of the two parcels with a $217.76 million loan from JPMorgan Chase.

In the larger transaction, Extell Development through the entity 407 Park Avenue LLC paid $251.7 million to Corem Property Group and GDSNY through the entity Clover Park Development LLC for the development building (V1) at 407 Park Avenue in Midtown East, Manhattan. The expected use is ground up development.
The deal closed on April 17, 2026 and was recorded on May 15, 2026. The property has zero square feet of built space and 109,750 square feet of additional air rights for a total buildable of 109,750 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $N/A and the price per buildable square foot is $2,293 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 Corem Property Group and GDSNY was David Roll . The signatory for Extell Development was Gary Barnett . The contract date was January 9, 2026.

In the second transaction, Extell Development through the entity 407 Park Avenue LLC paid $199.1 million to DWS Group and MRP Realty through the entity Rar2 – 405 Park, LLC for the development building (V1) at 405 Park Avenue in Midtown East, Manhattan. The expected use is ground up development.
The deal closed on April 17, 2026 and was recorded on May 15, 2026. The property has zero square feet of built space and 90,370 square feet of additional air rights for a total buildable of 90,370 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $N/A and the price per buildable square foot is $2,202 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 seller bought the property on May 2, 2016, for $237.8 million. The signatory for DWS Group and MRP Realty was James E. Toney and Alyssa Freeman . The signatory for Extell Development was Gary Barnett . The contract date was January 9, 2026.

The Promote first reported this transaction in December 2025.

The Real Deal, citing marketing material from the Newmark team that brokered the deal, Adam Spies, Marcella Fasulo and Adam Doneger, said the site allows for approximately 527,000 square feet of as-of-right development, with the potential to expand to about 700,000 square feet of rentable office space through the acquisition of additional air rights.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has records that the buyer Extell Development purchased 30 properties in 14 transactions for a total of $631.8 million and sold 10 properties in four transactions for a total of $182.8 million over the past 24 months.
The seller Corem Property Group had not purchased any other properties and sold one property in one transaction for a total of $80.8 million over the same time period.

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 two DOB violations, $1,000 in ECB penalties, and $1,650 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 East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the highest sale turnover among other neighborhoods in the city with $5.9 billion in sales volume in the last two years. For development, Midtown East is the 3rd most active neighborhood among other neighborhoods. It had 20.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 33 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 12 of the 20 commercial properties representing 1,538,314 square feet of the 1,627,839 square feet. The largest owner is Rithm Capital, followed by Rudin Management and then Mrp Realty.
There are no active new building construction projects on this tax block.

The majority, or 78 percent of the 1.6 million square feet of built space are office buildings, with elevator buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that Gdsny owned at least three commercial properties in New York City with 93,951 square feet and a PincusCo-determined asset value of $216.9 million. Within the portfolio, the bulk, or 95 percent of the 93,951 square feet of built space are V1 properties, with mixed-use properties next occupying 4 percent of the space.
The PincusCo database currently indicates that Corem Property Group owned at least three commercial properties in New York City with 93,951 square feet and a PincusCo-determined asset value of $216.9 million. Within the portfolio, the bulk, or 95 percent of the 93,951 square feet of built space are V1 properties, with mixed-use properties next occupying 4 percent of the space.

The buyer

The PincusCo database currently indicates that Extell Development owned at least 94 commercial properties with 2,368 residential units in New York City with 5,305,997 square feet and a PincusCo-determined asset value of $7 billion. The portfolio has $8.1 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and JPMorgan Chase respectively. Within the portfolio, the bulk, or 44 percent of the 5,305,997 square feet of built space are condo properties, with specialty properties next occupying 20 percent of the space.

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