Real Estate
Vacant Site Of Former UES Diner To Be Demolished
Extell Development is behind the demolition of a six-story brick building on the corner of First Avenue and East 86th Street.

UPPER EAST SIDE, NY — One of the city's largest development firms has filed plans to demolish a low-rise building that was once the site of a popular diner in the Yorkville neighborhood of the Upper East Side.
Extell Development filed plans with the city Department of Building to knock down 1651 First Ave., located on the corner of East 86th Street, in late November, according to city records. The building was once home to Gracie's Corner Diner & Grill, which has since relocated to Second Avenue.
The six-story brick building has been vacant for some time and its windows are currently boarded up. Most buildings on First Avenue between East 85th and 86th streets are kept in a similar condition.
Find out what's happening in Upper East Sidefor free with the latest updates from Patch.
The corner lot was sold in 2014 for $10.8 million, according to public records. The property changed hands from an entity known as 1651 First LLC to its new owner First NY LLC, according to the records.
The company known as First NY LLC also purchased 1649 and 1647 First Ave. in 2014 for just over $18 million. Department of Buildings records do not indicate demolition plans were filed for those sites.
Find out what's happening in Upper East Sidefor free with the latest updates from Patch.
It's unclear what will replace 1651 First Ave., as Extell has not filed any plans for construction on the site, according to city records.
Extell Development is behind one of the largest planned developments in Yorkville on First Avenue between East 80th and 79th streets. Work to dismantle buildings on the block began in August after Extell filed plans with the city in May to demolish the entire block.
In March, Extell Development's Gary Barnett told real estate publication The Real Deal that he plans to develop a mixed-use building with at least 250,000 square feet of buildable space on the block. In May, Extell struck a deal with the Church of Saint Monica to add as much as 100,000 square feet in air rights to the planned development.
Photo by Google Maps street view
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.