Extell Development has officially purchased a 68,676-square-foot East Harlem retail property home to a Pathmark supermarket, The Real Deal has learned.
The building, at 142-96 East 125th Street, is under a long-term lease with Pathmark and includes approximately 300,000 square feet of residential air rights and over 450,000 total buildable square feet with inclusionary housing bonuses. Extell secured the site for $39 million.
Victor Sozio, Shimon Shkury and Michael Tortorici of Ariel Property Advisors represented the seller, the East Harlem Abyssinian Triangle Limited Partnership, and procured the buyer.
“This was a complex transaction which required a pragmatic approach from both the buyer and seller,” Sozio said in a statement. “The site has been a valuable asset to East Harlem since it was developed in the 1990s and we believe it will continue to benefit the community for many years to come.”
East Harlem Abyssinian Triangle board members were reportedly squabbling over the agreement with Extell, according to reports in the Daily News, but finally approved the deal last week.
That looks fantastic! The part of 125th east of the MNR tracks is apropos of something in Dante’s Inferno and requires more and more redevelopment. Therefore, this is a welcome addition to that fetid bit of Biblical Gehenna.
At this point, I want them to build whatever they can in this area. It needs whatever development it can get. That place is the weirdest corner of Manhattan.
The MTA acquired a site at 160 East 125th Street in Harlem from Extell Development for $82 million, Crain’s reported. The MTA paid a premium for the 1.6-acre site — at least according to its own assessment — after it appraised the property at $45.4 million.
Gary Barnett’s Extell purchased the site in 2014 for $39 million, later spending an additional $21 million to buy PathMark out of its lease. In negotiations with the MTA, Barnett put the property’s value at $114 million, according to MTA documents.
The site will serve as an entrance to the extended Second Avenue subway, one of three stations being added to the Q line. The site also has the benefit of being adjacent to the 4, 5 and 6 lines that run underneath Lexington Avenue; the MTA plans to build an underground connection between the various subways at East 125th Street."
The Metropolitan Transportation Authority wants to rezone an East Harlem block to allow for a large new residential building atop the future terminus of the Second Avenue Subway extension.
The MTA filed plans Tuesday to rezone the block on the south side of East 125th Street between Third and Lexington avenues, beneath which the final station of the future Q line will be built no earlier than 2032. The MTA would pick a private developer to build an apartment tower with up to 684 units on an MTA-owned site on the block’s west side.
The block’s east side, also formerly owned by Extell, was acquired in December for $70 million by JCS Realty, which is planning a 15-story residential project.
The proposal would give the block a new mixed-use zoning designation - C6-11 - that was created through the City of Yes reforms approved in December, and enabled by the state law approved last year that lifted a decades-old cap on residential density. The future building would have a floor-area ratio of 15, exceeding the city’s previous limit of 14.
The MTA will issue a request for proposals to find a developer. But that process is years away: The RFP would not be issued until construction is underway, and the development would be finished around 2032, according to a presentation the MTA gave to a local community board.
