What's Happening?
Extell Development has purchased $36 million in air rights from the historic St. Thomas Church located in Midtown, New York. The acquisition involves 123,000 square feet of air rights from the landmarked
church, which was completed in 1914 and is known for its French Gothic Revival-style architecture. The church, designated a city landmark in 1966, aims to use the proceeds from this sale to conserve the building and sustain the parish without altering any part of the historic property. Extell has not disclosed specific plans for the use of these air rights, although they are typically transferred to adjacent properties. The developer is currently working on several nearby projects, including a mixed-use tower at 655 Madison Avenue and a significant development at the former Hotel Wellington site.
Why It's Important?
The acquisition of air rights by Extell Development is a strategic move that could significantly impact the real estate landscape in Midtown Manhattan. Air rights allow developers to build taller structures than zoning laws typically permit, which can lead to increased property values and more lucrative developments. For St. Thomas Church, the sale provides essential funds to maintain its historic structure, ensuring its preservation for future generations. This transaction highlights the ongoing trend of leveraging air rights in urban development, which can lead to more dense and vertically oriented cityscapes. The potential developments by Extell could bring more residential and commercial spaces to the area, influencing local businesses and the community.
What's Next?
Extell Development's next steps involve determining how to utilize the newly acquired air rights. While the firm has not specified plans, it is working on several projects in the vicinity, including a proposed 74-story mixed-use tower at 655 Madison Avenue and a 71-story development at the former Hotel Wellington site. These projects could benefit from the air rights, allowing for taller and more expansive structures. Additionally, Extell has proposed upgrades to the nearby 50th Street subway station in exchange for zoning bonuses, which could further enhance the area's infrastructure and accessibility. The real estate community will be watching closely to see how Extell's plans unfold and what impact they will have on Midtown's development.
Beyond the Headlines
The sale of air rights from St. Thomas Church to Extell Development underscores the complex interplay between preserving historical landmarks and pursuing urban development. While the church benefits financially, ensuring its preservation, the transaction raises questions about the balance between maintaining cultural heritage and accommodating modern growth. As cities continue to evolve, such deals may become more common, prompting discussions on how best to integrate new developments with existing historical sites. This could lead to innovative architectural solutions that respect the past while embracing the future.
