Gary Barnett Completes $175M Fifth Avenue Land Grab

Extell’s long-awaited Fifth Avenue project is moving forward after Gary Barnett closed on the final piece of the puzzle: a lot at 576 Fifth Avenue.

March 24, 2025

Nina Dale

Extell has finalized its Fifth Avenue assemblage, paying $175 million for the last missing lot at 576 Fifth Avenue.
In partnership with Ingka Investments, the full-block site will house a 33-story office tower, including Manhattan’s first Ikea superstore.
Barnett originally planned a supertall tower but pivoted to an office-heavy development, with new filings expected soon.

Key Takeaways

A Decade-Long Pursuit Pays Off

After 10 years of acquisitions, Extell’s Gary Barnett has completed his full-block Fifth Avenue site between West 46th and West 47th Streets. His final purchase—a lot at 576 Fifth Avenue for $175 million—was a steep price, even by his own admission, according to The Real Deal.

“We paid a stupid price, but it gives us the whole block, which is amazing,” Barnett told the New York Post.

The lot’s previous owner, Korea-based Sae-A Trading Co., purchased it for $101 million in 2021, making Barnett’s acquisition a sizable premium.

A New Vision for Midtown

Barnett’s completed assemblage will host a 33-story office tower, featuring an 80,000-square-foot Ikea superstore—the first of its kind in Manhattan. Ingka Investments, Ikea’s largest franchiser, will own the retail space and is co-developing the project with Extell.

“It’s the largest footprint available in Midtown and maybe anywhere,” Barnett noted.

Initially, Barnett had filed plans in 2021 for a 1,100-foot supertall residential and hotel tower but later shifted to an office-heavy design. His latest filing didn’t account for the newly acquired lot, so he plans to submit updated plans for the Kohn Pedersen Fox (KPF)-designed tower, expected to be tenant-ready in three years.

Financing and What’s Next

Extell secured a $340 million loan from South Korea-based IGIS Asset Management last summer to refinance the project. With the final piece in place, Barnett now has the freedom to move forward with one of Midtown’s most ambitious office projects.

The next step? New filings with the Department of Buildings to incorporate the latest acquisition and finalize the design for Fifth Avenue’s next major development.