---
title: "Extell Acquires Air Rights to Possibly Expand Scope of 655 Madison Avenue"
url: https://burnaze.com/article/77c25cb7-4931-4093-938c-b445fbc3af3e
source: "Commercial Observer"
original_url: https://commercialobserver.com/2026/11/extell-buys-air-rights-36-east-61st-street-655-madison-avenue/
author: "Mark Hallum"
category: "Business Services"
industry: "Business Services"
topics: ["Finance & M&A","Development & multi-unit"]
published: 2026-11-12T16:25:55.000Z
modified: 2026-11-13T00:01:56.702Z
image: https://commercialobserver.com/wp-content/uploads/sites/3/2026/11/655-Madison_Gary-Barnett-copy.jpg?quality=80&resize=1200%2C630&strip=
---

# Extell Acquires Air Rights to Possibly Expand Scope of 655 Madison Avenue

**TL;DR:** **Extell Development**’s buying spree in Manhattan shows no signs of waning after the **Gary Barnett**-led firm bought additional air rights in Manhattan’s Lenox Hill neighborhood on the Upper East Side.

*By Mark Hallum, originally published in Commercial Observer on 2026-11-12. [Read the original](https://commercialobserver.com/2026/11/extell-buys-air-rights-36-east-61st-street-655-madison-avenue/).*

## Story

**Extell Development**’s buying spree in Manhattan shows no signs of waning after the **Gary Barnett**-led firm bought additional air rights in Manhattan’s Lenox Hill neighborhood on the Upper East Side.

Extell paid a total of $34.9 million to **Hartz Mountain Industries** for the air rights attached to **36 East 61st Street** and **34 East 61st Street** to add some development potential to its supertall project at **655 Madison Avenue**, according to Tuesday filings in property records.

The 74-story mixed-use tower at the corner of Madison Avenue and East 60th Street is slated to have 154 condominium units and 233,000 square feet of office and retail space on ground floors, with **Chanel** as a potential tenant.

Extell and Hartz Mountain did not immediately respond to requests for comment.

Extell purchased the tower site for $160 million from **Williams Equities** in 2024, and Barnett has been clearing a path through adjacent sites to make way for the Madison Avenue project. He bought **33-39 East 60th Street** for $103 million in March 2025, followed by a $39.9 million transaction with private social club **Metropolitan Club** to transfer 135,146 square feet of air rights from **1 East 60th Street** in February of this year.

This week alone, three of Barnett’s deals for smaller properties have been made public, showcasing how busy the developer is in his plans for projects across Manhattan.

On Monday, a deed filing in property records indicated that Barnett paid **Jay** and **Stuart** **Podolsky** of **Amsterdam Hospitality Group** $27.9 million to purchase **1645 First Avenue** to potentially build a 542-unit housing project on the vacant site that Extell filed plans for in 2021.

The same day, Extell filed a deed showing that it spent $18 million on a four-story commercial building at **1190 Avenue of the Americas** in Midtown owned by **Lighthouse Properties** and **Solil Management**. The building is currently leased to a souvenir shop.

*Mark Hallum can be reached at* *mhallum@commercialobserver.com**.*

---
Originally reported by Mark Hallum, Commercial Observer (https://commercialobserver.com/2026/11/extell-buys-air-rights-36-east-61st-street-655-madison-avenue/). Summarized by Burnaze (https://burnaze.com/article/77c25cb7-4931-4093-938c-b445fbc3af3e).