Historic Manhattan Church Agrees to Sell Air Rights for $23.9 Million to Fund Maintenance and Community Outreach

A historic church in Midtown Manhattan has agreed to sell its remaining unused development rights for $23.9 million, turning an asset above its property into funding for maintenance and community outreach.

The Society of the Free Church of St. Mary the Virgin will transfer approximately 87,000 square feet of development rights to Extell Development, according to court documents cited by The Christian Post. The agreement illustrates how valuable Manhattan real estate can provide churches with financial resources while allowing them to retain their buildings.

A proposed order filed in New York Supreme Court in Manhattan indicates that Extell founder and chairman Gary Barnett executed the purchase agreement in December 2025. Rector Sammy Wood represented the church in the transaction.

The proceeds are expected to support general maintenance of the church's property at 133-145 West 46th Street and community initiatives serving New Yorkers in need. Ten percent is designated for the Episcopal Diocese of New York.

Air rights represent unused development capacity associated with a property. Under applicable zoning rules, transferring that capacity can allow another property owner to construct a larger building than would otherwise be permitted.

For St. Mary's, the agreement concerns its final portion of those rights. The church previously transferred approximately 131,000 square feet to the Durst Organization for its office tower at 114 West 47th Street, according to reporting cited by The Christian Post.

Extell's purchase would support its development at 570 Fifth Avenue, one block east of the church. The planned 32-story commercial project spans the Fifth Avenue blockfront between West 46th and West 47th Streets and is expected to include more than 1 million square feet of space, including Manhattan's first IKEA store.

The transaction also raises a longer-term question for historic congregations: how can a one-time property asset sustain maintenance and ministry needs that continue year after year?

St. Mary's proposed allocation connects the proceeds to both its physical property and its community responsibilities. With this sale exhausting its remaining development rights, decisions about managing the funds will carry significance beyond the immediate transaction.

The agreement forms part of a broader pattern of New York churches selling development rights to private developers. Such transactions can unlock substantial value, giving congregations resources to care for historic buildings and continue serving their neighborhoods.

For St. Mary's, the proposed $23.9 million deal brings those two priorities together: maintaining its Midtown presence and supporting people in need.