Extell pays $64M to Vornado for Carnegie Hill retail, rental that VNO bought from Extell for $165M

Extell Development through the entity Ex Lucida LLC paid $64 million through a ground lease acquisition to Vornado Realty Trust through the entity VNO 86 Lex LLC for the retail condominium unit at the Lucida at 150 East 86th Street, the 21-unit rental condo at 150 East 86th Street, and an adjacent 15-unit walkup building (C4) at 155 East 85th Street, all in Carnegie Hill, Manhattan. The expected use is cash flowing.
The deal closed on July 11, 2025 and was recorded on July 30, 2025. The three properties have 167,507 square feet of built space and 2,337 square feet of additional air rights according to a PincusCo analysis of city data. The sale price per built square foot is $382 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 Vornado Realty Trust was Steven Borenstein . The signatory for Extell Development was Marc Kwestel . October 8, 2010, Extell sold the three properties to Vornado for $165.28 million in 2010. Vornado borrowed $100 million at the time, then $146 million in 2014, which was later reset to $145 million in 2019.

For this acquisition, Extell borrowed $60 million. The fee owner for the ground lease is Solil Management, which is a company that manages the interests of the Sol Goldman estate.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Extell Development purchased seven properties in five transactions for a total of $473.8 million and sold seven properties in seven transactions for a total of $396.5 million over the past 24 months.
The seller Vornado Realty Trust purchased four properties in two transactions for a total of $129.6 million and sold 20 properties in eight transactions for a total of $1.6 billion over the same time period. Out of the three properties, one with a total of 167,507 square feet of built space generated revenue of $541,984 per year.

The property

The retail condo in Carnegie Hill has 167,507 square feet of built space and 2,337 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has a total lot size of 96,187 square feet. The city-designated market value for the property in 2022 is $123.1 million. The most recent loan totaled $147.6 million and was provided by HSBC Bank on November 6, 2019.

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 $50 in OATH penalties 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 Carnegie Hill, The majority, or 56 percent of the 13.5 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 18 percent of the space. In sales, Carnegie Hill has 3.4 times the average sales volume among other neighborhoods with $919.2 million in sales volume in the last two years and is the 10th highest in Manhattan. For development, Carnegie Hill has had very little major development activity relative to other neighborhoods.It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On the tax block of 150 East 86th Street, PincusCo has identified the owners of six of the nine commercial properties representing 700,662 square feet of the 813,934 square feet. The largest owner is Lance West, followed by Dennis Riese and then Silber Investment Properties.
On the tax block, there was one new building construction project filed totaling 63,888 square feet. It is a 32-unit, 63,888 square-foot residential (R-2) building submitted by Rybak Development and filed by Sergey Rybak with plans filed November 4, 2020 and permitted May 26, 2022.

The majority, or 85 percent of the 813,934 square feet of built space are elevator buildings, with specialty buildings next occupying 10 percent of the space.

The seller

The PincusCo database currently indicates that Vornado Realty Trust owned at least 55 commercial properties with four residential units in New York City with 15,490,385 square feet and a city-determined market value of $7 billion. (Market value is typically about 50% of actual value.) The portfolio has $6.7 billion in debt, with top three lenders as JPMorgan Chase, Goldman Sachs, and Bank of China respectively. Within the portfolio, the bulk, or 78 percent of the 15,490,385 square feet of built space are office properties, with retail properties next occupying 12 percent of the space. The bulk, or 97 percent of the built space, is in Manhattan, with Bronx next at 3 percent of the space.

The buyer

The PincusCo database currently indicates that Extell Development owned at least 68 commercial properties with 676 residential units in New York City with 2,881,961 square feet. The portfolio has $7.2 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and JVP Management respectively. Within the portfolio, the bulk, or 37 percent of the 2,881,961 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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