Extell Buys Midtown Air Rights for $23.93 Million Tower
The developer acquired 87,000 square feet of air rights from a church to clear the way for its 570 Fifth Avenue project.
Updated on Oct. 26, 2026 in Commercial
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Extell Development has reached a $23.93 million deal to purchase 87,000 square feet of air rights from the Church of St. Mary the Virgin in Midtown. This transaction supports the progress of the 570 Fifth Avenue tower project, which is scheduled for completion in 2028.
Why it matters
The acquisition of these air rights allows the developer to move forward with the large-scale office and retail project at 570 Fifth Avenue. For the local community, this milestone indicates continued development in the Midtown area as the tower prepares to host major office tenants and retail space.
The agreement covers 87,000 square feet of air rights for $23.93 million. This follows Extell's earlier $175 million acquisition of the site's corner lot.
The players
Extell Development
A real estate developer known for high-end residential and commercial high-rise projects in New York City.
Church of St. Mary the Virgin
A religious institution located at 145 West 46th Street that is liquidating its air rights.
Simpson Thacher & Bartlett
A global law firm that has committed to a large office space footprint in the new tower.
Ingka Investments
The investment arm responsible for securing the base-level retail space for Ikea.
Matthew Foster Heyd
The Bishop of the Protestant Episcopal Church in New York who authorized the sale.
The details
The purchase agreement was signed in December 2025 and requires New York Supreme Court approval because the air rights are owned by the Church of St. Mary the Virgin. These rights are essential for the construction of the 570 Fifth Avenue tower, a high-density development featuring a 916,000-square-foot office lease for Simpson Thacher & Bartlett and an 80,000-square-foot Ikea store.
Timeline
December 2025: The parties signed the air rights purchase agreement.
2025: Extell acquired the corner lot for $175 million.
May 2026: Simpson Thacher & Bartlett signed their office lease.
October 23, 2026: The agreement was filed with the New York Supreme Court.
End of 2028: The 570 Fifth Avenue tower is expected to be delivered.
Money Landscape
This transaction reflects the standard practice of transferring development rights in Midtown to maximize floor area for dense commercial projects. It aligns with the city's ongoing reliance on air rights sales to facilitate large-scale office and retail developments.
Large-scale commercial developments like 570 Fifth Avenue signal shifts in local demand for office and retail space in Midtown. Residents and local business owners should watch for changes in street-level activity and transit patterns as this project nears its 2028 completion date.
The takeaway
The $23.93 million sale of air rights confirms that significant capital is still moving into high-density office development in Midtown. Homeowners and investors in the area should monitor the 570 Fifth Avenue project timeline as its delivery date approaches in late 2028.
Further reading
Learn more about local projects in the New York City Commercial section.
Source note: This article includes information reported by Commercial Observer.
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