Historic Church of St. Mary agrees to sell air rights to developer for $23.9 million

The historic Society of the Free Church of St. Mary the Virgin in Midtown Manhattan has agreed to sell 87,000 square feet of its unused development rights to real estate giant Extell Development for $23.9 million, according to court documents.

A proposed order filed Friday in New York Supreme Court in Manhattan and cited by Crain’s New York Business said Gary Barnett, Extell’s founder and chairman, executed a purchase and sale agreement with the church for air rights in December 2025. The church’s rector, Sammy Wood, represented the church in the deal.

The church is expected to use the funds from the sale to support general maintenance of its property, which spans 133–145 West 46th St. It will also support several community initiatives focused on helping the city’s needy, while 10% will go to the Episcopal Diocese of New York.

The sale marks the final portion of the church’s air rights. It previously transferred another 131,000 square feet to the Durst Organization for its office tower at 114 W. 47th St., according to Commercial Observer.

Air rights, explains Caldwell Commercial, refer to a property owner's legal authority to control, occupy, lease, sell or develop the vertical space directly above their parcel of land or building. The unused portion of a property owner’s air rights can often be sold or leased to nearby property owners. Developers usually buy these rights to build taller buildings than their own base plot would normally allow. Property owners sometimes purchase air rights to protect views from windows or prevent anything blocking sunlight.

With the purchase of the Church of St. Mary’s air rights, Extell can construct an even larger development at 570 Fifth Ave. The multi-parcel commercial development in Manhattan's Diamond District spans the entire blockfront between West 46th and West 47th Streets, one block east of the church. The planned 32-story development is set to encompass over 1 million square feet of space and house Manhattan’s first IKEA store.

According to Crain’s, Extell is also in contract to buy 123,000 square feet of air rights from St. Thomas Church at 678 Fifth Ave. for $36 million. Extell also reportedly paid $39.9 million to the Metropolitan Club at 790 Fifth Ave. for 135,000 square feet of development rights for another major tower planned for 655 Madison Ave.

Many churches across New York City’s five boroughs have sold air rights to private developers for a variety of reasons. While the Church of St. Mary’s recent deal with Extell Development is quite lucrative, records show that it only ranks as the sixth most lucrative church air rights sale.

Sitting at the top of the church air rights deals is the historic St. Patrick’s Cathedral’s sale of some 525,000 square feet in development rights on Park Avenue for $164 million in 2023 to billionaire hedge fund boss Ken Griffin, Steve Roth's Vornado Realty Trust, and Rudin Management.