Extell says $90M purchase of 1855 Broadway is “abandoned”

By Adam Pincus

Extell Development’s plan to acquire and redevelop 1855 and 1849 Broadway on the Upper West Side has effectively been abandoned, the firm disclosed in a lawsuit filed in New York State Supreme Court yesterday.

Gary Barnett’s Extell signed a contract in September 2019 to buy the buildings from New York Institute of Technology for $90 million. Extell put down a $4.5 million deposit.

The purchase and sale agreement is here.

But one of the conditions for the closing was that the school would, by October 30, 2020, have a relocation plan. Instead, the school has told students and others that it has no such plan, according to the filing.

This filing as with all court filings represents the position of the plaintiff, and the information presented may or may not be accurate. The school has not yet filed response papers.

“Defendant is not proceeding with the deal. While Defendant initially took steps to explore potential new spaces in Queens, it has since abandoned its relocation plan. In recent months Defendant has informed investors, prospective students, and Plaintiff that it is not relocating its campus.” the Extell filing says.

Extell filed the suit against the seller, the New York Institute of Technology, claiming the school was improperly holding on to the $4.5 million deposit.

“Defendant claimed that Plaintiff was required to either pay an additional $9 million deposit for up to 20 month on a transaction that cannot and will not occur or else forfeit its original $4.5 million deposit,” the complaint says.