Within days, the founder of Extell Development emerged on two very different fronts: quietly locking up one of Park Avenue’s most consequential development assemblages and winning a court ruling that clears the way for him to potentially take control of a deeply distressed office tower owned by rivals SL Green and RXR.
Together, these moves underscore Barnett’s playbook in a market still working through pain: Lean on prime locations, exploit disruption, and don’t shy away from conflict.
On the growth front, Barnett is under contract to buy 405-415 Park Avenue, air rights from Central Synagogue and is negotiating the adjacent office building at 110 East 55th Street, according to people familiar with the deal.
Sellers bought the pieces for more than $500 million, The Promote first reported, and the combined site could support about 700,000 square feet with additional air rights. The assembly is located just steps from JPMorgan Chase’s new 270 Park headquarters and near Citadel and Vornado’s planned 350 Park tower, placing it squarely in the corridor where trophy offices’ capital is concentrated.
At the same time, Barnett is exerting its advantage on the other side of the market. A state Supreme Court judge this week denied SL Green and RXR’s attempt to block a UCC foreclosure auction tied to Worldwide Plaza, clearing the way for Extell to move forward after quietly acquiring the senior mezzanine debt.
The owners had argued that the auction was a sham designed to hand Barnett the keys. The judge disagreed and emphasized that sophisticated parties are bound by the contracts they sign.
Worldwide Plaza is an example of office need: roughly 40 percent vacant after Cravath’s departure, burdened by nearly $1 billion in senior CMBS debt and now headed for a mezz sale with Extell as the only qualified bidder. Controlling the debt would give Barnett enormous influence over the future of the 1.8 million square foot tower.
Taken together, the Park Avenue assembly and the Worldwide Plaza fight show Barnett operating on two tracks at once: collecting blue chip dirt for the next cycle while using debt to pry opportunity out of this cycle.
In a divided Midtown market, he expects both sides to pay off.
Gary Barnett isn’t the only one making news in New York City real estate this week. Here are other top stories of the week:
“Cheap Whores”: Tal Alexander Email Revealed During Hamptons Prosecutor’s Cross-Examination
The third day of the sex trafficking trial of the Alexander brothers focused on the cross-examination of Maya Miller, a woman who accused Tal Alexander of raping her in 2014 in the Hamptons.
Prosecutors allege that between 2008 and 2021, Oren, Alon and Tal were involved in a conspiracy to commit sex trafficking, including drugging and sexually assaulting women. The brothers have denied the allegations and pleaded not guilty to the charges.
Also watch the first episode of our documentary about the Alexander brothers.
Fictitious deals and fake emails: New Nussbaum filings expose alleged Ponzi scheme
Disgraced attorney Mark Nussbaum admitted in legal filings that he funneled $336 million from his law firm’s escrow clients to real estate investor Mendel Steiner and his family between 2022 and 2025 as part of an alleged Ponzi scheme.
The documents show that Nussbaum transferred $24 million directly to Steiner or his family’s companies, and another $68 million was sent to his family through Steiner’s companies, Aven Realty and Real Green Management, which also paid Nussbaum $104 million.
Carmel Partners is purchasing a portion of the $500 million UWS apartment portfolio
Ron Zeff’s Carmel Partners is buying a $500 million multifamily portfolio that was promoted as an investment protected from a possible rent freeze under Mayor Zohran Mamdani.
The investment firm is nearing a deal to buy MetLife’s minority stake in a portfolio of five buildings and 710 units near Columbus Circle. Four of the five buildings are open market and the fifth is subject to an older 421a agreement, under which an owner could increase rents by 47 percent before meeting legal rent limits.
Eli Karp sues Greystone, BBG over alleged loan-to-own rating system
Developer Eli Karp is suing lender Greystone and appraisal firm BBG, claiming they set up a loan-to-own scheme by deliberately overvaluing his apartment complex at 271 Lenox Road.
The lawsuit alleges that BBG’s 2019 valuation of $46.2 million was used to lure Karp into a $34.5 million bridge loan; a subsequent appraisal in 2024 valued the property at $29.6 million, which Karp uses as evidence of fraudulent inflation.
After defaulting, the property was sold at foreclosure for $10 million, leaving Karp responsible for a $15 million personal guarantee.
He is seeking $16.6 million in damages for alleged appraisal inflation and another $122 million from Greystone for lost opportunities.
The Council revives two housing regulation bills, COPA continues to veto
Finally, the City Council overrode 17 vetoes from former Mayor Eric Adams, including two housing regulation bills that set minimum rates for homeownership and low-income units in city-financed projects.
However, the Council did not override the veto of the Community Opportunity to Purchase Act, although the bill’s sponsor plans to reintroduce the measure.
Other vetoes that were rescinded included measures to set minimum wages for building security guards, increase transparency in the cooperative application process and create a city-managed land bank.
Read more
Gary Barnett has signed a contract to purchase a major Midtown assembly
Barnett scores victory in Worldwide Plaza showdown with Holliday and Rechler
Fictitious deals and fake emails: New Nussbaum filings expose alleged Ponzi scheme
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