Extell Buys Air Rights for Fifth Avenue Tower
Extell Development secures 87,000 square feet of air rights from the Church of St. Mary the Virgin for a new skyscraper project.
Updated on Oct. 26, 2026 in Commercial
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Extell Development has agreed to purchase 87,000 square feet of air rights from the Church of St. Mary the Virgin for $23.93 million. The transaction, which supports the ongoing 570 Fifth Avenue tower project, has been filed with the New York Supreme Court for approval.
Why it matters
The deal allows for the continued vertical development of the 570 Fifth Avenue tower in Midtown. The project already features significant commercial commitments, including an anchor office lease and a planned ground-floor retail space.
The agreement includes 87,000 square feet of air rights priced at $23.93 million. This follows Extell's $175 million acquisition of the development's corner lot in 2025.
The players
Extell Development
A prominent New York City-based real estate developer known for high-profile residential and commercial skyscrapers.
Church of St. Mary the Virgin
A historic Episcopal parish located at 145 West 46th Street in Manhattan.
Matthew Foster Heyd
The Bishop of the Episcopal Diocese of New York who provided approval for the air rights sale.
Simpson Thacher & Bartlett
A global law firm that has committed to a major office lease within the future 570 Fifth Avenue building.
The details
The development plan for 570 Fifth Avenue includes an 80,000-square-foot Ikea store at the base and a 916,000-square-foot office lease signed by Simpson Thacher & Bartlett. The sale of the air rights from the church at 145 West 46th Street was approved by the board of trustees, the Protestant Episcopal Church in New York, and Bishop Matthew Foster Heyd.
Timeline
December 2025: Extell and the church signed the purchase and sale agreement.
2025: Extell acquired the corner lot for $175 million.
May 2026: Simpson Thacher & Bartlett signed a large office lease for the tower.
October 23, 2026: The agreement was officially filed with the New York Supreme Court.
End of 2028: The tower is expected to reach completion.
Culture Shift
The air rights transfer for 570 Fifth Avenue follows the established regulatory process for property development in Midtown Manhattan. This move mirrors standard practices for high-density urban development, where developers aggregate floor area ratios from neighboring historic or non-profit sites to maximize building height.
Residents and workers in Midtown can anticipate ongoing construction activity at 570 Fifth Avenue through the end of 2028. The inclusion of an Ikea store at the tower's base will eventually provide a new major retail destination for the local neighborhood.
The takeaway
Large-scale commercial developments in Manhattan frequently rely on the consolidation of air rights from historic sites to meet zoning requirements. Investors and neighbors should monitor upcoming court filings to stay informed about project timelines and scale.
Further reading
For more news on large-scale developments, see New York City Commercial.
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