Key Takeaways
- • An undisclosed hedge fund has become a preferred equity partner in nine Extell Development properties, injecting $1.2B of equity, according to filings with the Tel Aviv Stock Exchange obtained by Bisnow.
- • The projects span Manhattan, Brooklyn and Utah, and include the 1.8M SF mixed-use residential redevelopment of the former Walt Disney Co. campus on the Upper West Side.
- • Extell spent $921M in early 2022 on the Disney parcels, which the TASE filings now tie to a planned 1.8M SF project, with local advocacy group Landmark West raising concerns about the scale.
- • Several projects remain in early development stages, and the filings do not disclose how the $1.2B will be allocated across the nine properties.
- • Extell and Gary Barnett did not respond to Bisnow's requests for comment.
Summary
An undisclosed hedge fund has become a preferred equity partner in nine properties owned by Extell Development and its founder Gary Barnett, according to filings with the Tel Aviv Stock Exchange, where Extell raises money from bondholders. The filings, obtained by Bisnow and translated using Google, indicate the fund will contribute $1.2B to a development pipeline that Bisnow describes as the fruit of years of lot assemblage. The filings do not show how much capital goes into each project, though total development costs are expected to reach billions of dollars.
The largest revelation in the documents is a planned 1.8M SF mixed-use residential project on the former Walt Disney Co. campus. Extell spent $921M in early 2022 on parcels that housed the former ABC and Disney broadcasting facilities, which span 1.7M SF according to Commercial Observer. Landmark West has criticized the project, noting that as-of-right zoning could allow a building of up to 90 stories, or 1,200 feet.
Other projects in the filings include a planned 600K SF hotel, residential and retail development at the shuttered Wellington Hotel at 871 Seventh Ave., a 600K SF mixed-use building at 350 E. 86th St. that the equity could revive after holdout tenant issues, and an 800K SF rental and condo development at 231 W. 96th St. involving ABS Partners Real Estate. In Downtown Brooklyn, the filings indicate the 356 Fulton St. project may expand to 600K SF. At 576 Fifth Ave., Extell plans a 33-story, 1.1M SF commercial tower with offices and Manhattan's first Ikea, which is investing approximately $292M in ordinary and preferred capital. At 655 Madison Ave., the filings appear to confirm reports that Chanel is in talks to buy retail space for around $450M. The Torch, a 875K SF hotel project at 740 Eighth Ave., was previously financed with $1.3B, and the new investment could further advance it. The hedge fund is also involved in Deer Valley East Village in Utah, which doubles the skiable terrain to over 5,700 acres.
Barnett and Extell did not respond to multiple requests for comment.
The largest revelation in the documents is a planned 1.8M SF mixed-use residential project on the former Walt Disney Co. campus. Extell spent $921M in early 2022 on parcels that housed the former ABC and Disney broadcasting facilities, which span 1.7M SF according to Commercial Observer. Landmark West has criticized the project, noting that as-of-right zoning could allow a building of up to 90 stories, or 1,200 feet.
Other projects in the filings include a planned 600K SF hotel, residential and retail development at the shuttered Wellington Hotel at 871 Seventh Ave., a 600K SF mixed-use building at 350 E. 86th St. that the equity could revive after holdout tenant issues, and an 800K SF rental and condo development at 231 W. 96th St. involving ABS Partners Real Estate. In Downtown Brooklyn, the filings indicate the 356 Fulton St. project may expand to 600K SF. At 576 Fifth Ave., Extell plans a 33-story, 1.1M SF commercial tower with offices and Manhattan's first Ikea, which is investing approximately $292M in ordinary and preferred capital. At 655 Madison Ave., the filings appear to confirm reports that Chanel is in talks to buy retail space for around $450M. The Torch, a 875K SF hotel project at 740 Eighth Ave., was previously financed with $1.3B, and the new investment could further advance it. The hedge fund is also involved in Deer Valley East Village in Utah, which doubles the skiable terrain to over 5,700 acres.
Barnett and Extell did not respond to multiple requests for comment.
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