Extell signs $322.4M construction loan with TYKO Capital for supertall in Lenox Hill, part of $1.1B debt

Extell Development through the entity 655 Madison LLC as borrower signed a new construction loan with lender TYKO Capital through the entity 655 Madison New Debt Lender LLC valued at $322.4 million for a supertall mixed-use development at 655 Madison Avenue in Lenox Hill, Manhattan. The total construction debt is reported to be about $1.1 billion.
The deal closed on December 15, 2025 and was recorded on December 30, 2025. The five properties have 236,426 square feet of built space and 110,665 square feet of additional air rights for a total buildable of 258,200 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,363 and the price per buildable square foot is $1,248 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 Extell Development was Marc Kwestel and Ahuva Genack . The signatory for TYKO Capital was Adi Chugh . The total amount is reported at $1.1 billion.

Description of the project in ULURP application: “74 story, 1,162-foot-tall mixed-use building (the Proposed Development). The Proposed Development would include approximately 232,668 gsf of commercial space, approximately 476,481 gsf of residential space (154 residential units), and 95,615 gsf of mechanical space.”

Prior sales, articles and revenue

Commercial Observer reported on December 16, 2025 that Extell Development borrowed $1.1 billion from TYCO Capital for 655 Madison Avenue, Manhattan, NY.

The Real Deal reported on December 17, 2025 that Extell Development borrowed $1.1 billion from TYCO Capital for 655 Madison Avenue, Manhattan, NY.

Violations and lawsuits

The properties were involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $390,266 money judgment concerning a retail lease filed on March 26, 2025, by Extell Development against Abraham Merchant and Merchants Hospitality. In addition, according to city public data, the properties have received one DOB violation, $15,000 in ECB penalties, $15,580 in OATH penalties, and one housing litigation in the last year.

Development

For the tax lot buildings, two out of the five buildings received a initial certificate of occupancy in the last ten years. On these lots, there is one active new building construction project, M01139026, for a 62-unit, 161,208 square-foot mixed-use building. The project was submitted by Extell Development and filed by David Rothstein with plans filed November 18, 2024 and it has not been permitted yet.

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 $4.5 billion in sales volume in the last two years. For development, Lenox Hill has near average amount of major developments among other neighborhoods and is the 23rd highest in Manhattan. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 653 Madison Avenue, 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 Extell Development and then Partyoftwo Llc.
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 70 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 borrower

The PincusCo database currently indicates that Extell Development owned at least 63 commercial properties with 691 residential units in New York City with 2,788,853 square feet and a city-determined market value of $805 million. (Market value is typically about 50% of actual value.) The portfolio has $7.3 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 2,788,853 square feet of built space are specialty properties, with elevator properties next occupying 21 percent of the space. They are all located in Manhattan.

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