Extell Development Co. has scored the gold ring in one of Manhattan’s strangest real estate sagas. Gary Barnett’s ever-aggressive company has signed a contract to buy 14 prime properties from enigmatic Frank Ring, The Post has learned.
The mega-deal is expected to close in a few months, sources said.
There was no word on what Extell was paying. Investment-sale brokers valued the portfolio at between $600 million and $800 million.
The buildings total around 1 million square feet — among them, mostly vacant 114 E. 25th St. and entirely vacant 153 W. 23rd St.
Surging Extell boasts a 20 million square-foot portfolio of commercial and residential properties. Among other projects, it developed the International Gem Tower on West 47th Street, One57 on West 57th, the Lucida condo on Lexington Avenue and five apartment buildings in Riverside West.
As reported in The Post on Sunday, Frank Ring and his brother Michael inherited 15 mostly small, prewar buildings from their father in 1988. Each brother owned a 50 percent stake and Frank was named portfolio manager.
But Frank kept many of the small prewar properties vacant for decades despite a booming office market. In 2011, Barnett clashed with the Rings at 20 W. 47th St. on the diamond block, where Extell owned a 75 percent stake. Extell forced an auction to acquire the 25 percent Barnett didn’t already own for $18.25 million. Extell later sold the building.
Meanwhile, also in 2011, fed-up Michael decided to sell a portion of his 50 percent stake in the portfolio to investor Joseph Tabak, who took Michael to court to force him to follow through on the sale after he changed his mind.
Tabak subsequently sold an option to flip his share to Extell for $74 million, but Frank clung to his stake. Extell again asked for a court-ordered auction, claiming Frank had “mismanaged” the buildings.
A judge did order an auction which was to have started with 251 Park Avenue South, a 100,000 square-footer nearly 70 percent empty.
But the proceeding set for Oct. 9 was mysteriously postponed until next month. The reason, it turns out, was that Barnett was negotiating with Frank for the whole collection.
The bulk sale to Barnett will leave Michael with “a small stake,” sources said, but Extell will have control of all the buildings.
Some of them are handsome, prewar gems which may be a “blank slate” to Extell.
“Several would make fine boutique office addresses once they’re fixed up, and some might be just right for hotels,” an insider said.
Extell declined to comment. Frank Ring could not be reached.