Extell Buys Midtown Air Rights for Fifth Avenue Tower
The developer secured 87,000 square feet of rights from a local church to advance its upcoming 2028 high-rise project.
Updated on Oct. 26, 2026 in Commercial
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Extell Development is set to purchase 87,000 square feet of air rights from the Church of St. Mary the Virgin for $23.93 million. This transaction supports the construction of a new tower at 570 Fifth Avenue.
Why it matters
The deal marks a significant step in the development of a major Midtown tower project expected to reshape the local commercial landscape. The sale will provide the church with significant funds while enabling the expansion of the high-profile 570 Fifth Avenue site.
The agreement covers 87,000 square feet of air rights priced at $23.93 million. This follows Extell's earlier $175 million acquisition of the project's corner lot.
The players
Extell Development
A major New York real estate developer known for large-scale luxury residential and commercial high-rise projects.
Church of St. Mary the Virgin
A historic Midtown Manhattan parish located at 145 West 46th Street.
Bishop Matthew Foster Heyd
The presiding leader who approved the church's air rights transaction.
Simpson Thacher & Bartlett
A prominent international law firm that serves as an anchor tenant for the development.
Ikea
An international home furnishings retailer that is slated to occupy the base of the new tower.
The details
Extell Development plans to integrate these air rights into its 570 Fifth Avenue tower project to allow for increased building density. The developer has already secured anchor tenants for the site, including an 80,000-square-foot Ikea and a massive 916,000-square-foot lease with law firm Simpson Thacher & Bartlett. The agreement now awaits final approval from the New York Supreme Court to proceed.
Timeline
December 2025: Parties signed the air rights purchase agreement.
October 23, 2026: The deal was filed with the New York Supreme Court.
End of 2028: Expected delivery date for the tower.
The Home Front
This deal highlights the ongoing trend of developers using air rights transfers to unlock density in constrained Midtown real estate. It reflects broader city efforts to balance modern commercial high-rise development with the financial sustainability of historic local institutions.
Midtown residents and commuters should anticipate long-term construction activity at the 570 Fifth Avenue site through 2028. Property owners in the vicinity can track official filings to understand potential impacts on local street-level traffic and zoning patterns.
The takeaway
The sale allows the Church of St. Mary the Virgin to leverage its property assets to support its mission while fueling large-scale commercial growth. Residents should monitor the site's development schedule as the project moves toward its projected 2028 completion date.
Further reading
For more updates on development in the area, check out the Commercial section.
Source note: This article includes information reported by Commercial Observer.
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