Fifth Avenue in Manhattan, New York, is a symbol of the city. It stretches from Washington Square Park in the south to Harlem and serves as the baseline that divides Manhattan east and west. In particular, the Midtown section between 34th St. and 59th St. is packed with landmarks that represent New York, including the Empire State Building, the New York Public Library, Rockefeller Center and St. Patrick's Cathedral. It is also a world-renowned shopping street lined with luxury brand stores such as Tiffany, Cartier, Gucci and Louis Vuitton.
In the middle of this street, where you would think there is no vacancy, a new large building will rise for the first time in 60 years. It is the "570 Fifth Avenue" project led by U.S. real estate developer Extell. The project will develop an entire Fifth Avenue block between 46th St. and 47th St. into a mixed-use office and retail building. The total project cost is $4 billion, about 6 trillion won.
The project has been personally led by Extell founder and Chair Gary Barnett. Over 18 years, he negotiated with owners of 15 individual buildings to secure the development site piece by piece. He effectively assembled a full-block site in one of the most expensive and complex locations in New York.
Korean-descended figures and Korean capital are also being tied to this development in the heart of New York. In Mar., Extell named Korean American Andrew Jung, 53, as co-chief executive officer (CEO). Jung previously led the U.S. real estate fund at global private equity firm Carlyle and later founded the real estate investment firm IPG.
Incoco Group is also seeking to collaborate on this project. Incoco Group is led by first-generation immigrant entrepreneur Chair Park Hwa-young. Park first developed "stick-on manicures," grew the company into a global cosmetics brand and, six years ago, entered U.S. real estate development.
ChosunBiz conducted a written interview with Jung and Park. Jung said, "Korean investors have grown into one of the world's largest sources of capital," adding, "The perfect conditions are in place to expand cooperation between Extell and Korean capital." Park said, "I will serve as a bridge connecting Korean financial capital and Extell."
◇ "Secured Fifth Avenue's last site after 18 years"
The following is a Q&A with Extell co-CEO Andrew Jung.
-What kind of company is Extell?
"Extell is a real estate developer founded in 1989 by Chair Gary Barnett. It is well known for supertall luxury condos and commercial real estate development. In 2013 it developed ONE57 in Midtown Manhattan, and in 2020 it completed Central Park Tower, the tallest residential building in the world. Gary Barnett, along with Jeff Blau of Related Companies, which developed Hudson Yards, is regarded as one of New York's leading real estate developers."
-What led you to join as Extell's co-CEO?
"Early this year, Chair Gary Barnett personally asked me to join. He wanted to further strengthen Extell's growth and asked me to serve as co-CEO."
-Were you in real estate before joining Extell?
"Yes. After majoring in economics at the Wharton School of the University of Pennsylvania, I joined Carlyle. I later served as head of the U.S. real estate fund at Carlyle. Just before joining Extell, I founded and ran a real estate investment firm called IPG."
-Where will "570 Fifth Avenue" be located?
"It's a full block on Manhattan's Fifth Avenue between 46th St. and 47th St. It can be called the last vacant land on Fifth Avenue."
-This is the priciest, most densely built part of Manhattan. How did you secure the site?
"Over 18 years, Chair Gary Barnett carried out multiple transactions with owners of 15 individual buildings and acquired the land step by step. The total site area is about 51,000 ft² (square feet), roughly 4,738 m²."
-Why do you think he never gave up for 18 years?
"I believe it's due to Chair Gary Barnett's exceptional real estate judgment and his conviction in the project's success. Even if it takes time, if he thinks something can become a symbolic project, he pushes it through to the end. That is the driving force that keeps producing iconic projects."
-How large is the project?
"The total project cost is $4 billion, about 6 trillion won. Of that, $2.8 billion will be raised through a construction loan, a method similar to Korea's project financing (PF). The remaining $1.2 billion is equity investment. Extell itself will invest $600 million, and we are recruiting investors for the remaining $600 million."
-Are you also discussing this with Korean investors?
"We plan to discuss it with major institutional investors in Korea."
-Have you signed any lease agreements?
"We have secured Simpson Thacher & Bartlett, a global law firm, and Ikea as anchor tenants. We signed a 27-year long-term lease with Simpson Thacher. The total leasable office area is about 1.5 million ft², of which Simpson Thacher is expected to occupy about 916,000 ft². Ikea plans to use about 95,000 ft² on the basement and second floors out of about 115,000 ft² of total leasable retail space."
-We understand you are a Korean immigrant. When did you come to the United States?
"I was born in Busan and came to the United States with my parents when I was two. I was so young that I don't remember how we came. I was told we flew. When I came to, I was in America."
-Where did you grow up?
"I grew up in Queens and Brooklyn, New York. My father came to the United States with only $100 and drove a taxi. He later ran a variety store but went bankrupt after a robbery. After that, he started a company that supplied laundry equipment and supplies to Korean American dry cleaners."
-As a Korean-descended CEO, what is your goal?
"I want to play a role in actively connecting Extell and Korean capital. In the past, cooperation between Extell and Korean capital was limited. But I believe much larger cooperation is possible going forward. Extell is growing into the top developer in the United States, and Korea has also grown into one of the world's largest sources of capital. The right conditions are in place for both sides to work together."
◇ "I will serve as a bridge linking Korean capital with New York development"
Incoco Group Chair Park Hwa-young is a Korean diaspora entrepreneur who opened a new path in the global nail market with "stick-on manicures." She came to the United States to study vocal music, found a business idea in everyday inconveniences, and developed a product that turned liquid nail polish into a dry-film format, growing Incoco into a global brand.
Park entered real estate development six years ago. She successfully completed five projects, including residential developments in Brooklyn and Long Island and a mixed-use retail development in Manhattan's Chelsea. She is also exploring investment and collaboration opportunities in the 570 Fifth Avenue project.
The following is a Q&A with Incoco Group Chair Park Hwa-young.
-How did Incoco Group come to collaborate with Extell on the "570 Fifth Avenue" project?
"We had maintained a close relationship with CEO Andrew Jung even before he joined Extell. In fact, when Andrew received the offer to become Extell's co-CEO, I strongly recommended it, saying it would be the opportunity of a lifetime. After he took the helm at Extell, we began exploring investment and collaboration within feasible bounds to ensure the project's success. Going forward, we plan to serve as a bridge connecting Korean financial capital and Extell."
-You seem to have particularly high expectations for President Andrew Jung.
"It's because of my affection for the Korean American community. First-generation Korean immigrants worked hard and passed on good education and a certain amount of wealth to their children. But unlike the networks of mainstream American society, they could not pass down enough of the social assets that second-generation Koreans need. So second-generation Korean Americans had to open new paths on their own to enter the mainstream.
I hope second-generation Korean Americans will establish themselves as confident members of American society in politics, the economy and culture, and that their success will carry on to the third and fourth generations. In that sense, Andrew Jung's appointment as Extell co-CEO is meaningful. I think the Korean community should also join forces for bigger success."
-Why did you jump into real estate development?
"Running a business taught me how much value good locations and spaces can create. A cosmetics business does not grow on products alone; the space where the brand sits, the places customers experience it and the platforms where people and capital meet are crucial. Real estate development was a natural extension from that perspective."
-What role does Incoco Group hope to play in this project?
"Rather than pushing to be at the forefront, we want to collaborate in areas where we excel. It is important to create touchpoints between Korean capital and a major U.S. developer and to build a trustworthy partnership. 570 Fifth Avenue is not just a building development; it is a symbolic project taking place in the heart of New York. If Korean capital and the Korean American network can participate meaningfully, that alone would be a major achievement."
-What would you like to say to Korean investors?
"U.S. real estate development is large in scale and structurally complex. So who you work with matters. Extell is a developer that has already delivered multiple symbolic projects in New York. 570 Fifth Avenue has the location, tenants and developer capability all in place. It can be a good opportunity for Korean investors to participate in a core global asset."