A historic Episcopal church in Midtown Manhattan has agreed to sell the last of its unused development rights above its building, a deal worth $23.9 million that will help pay for the upkeep of its property and support work among the city's needy, according to court documents cited by The Christian Post.

The Society of the Free Church of St. Mary the Virgin, located at 133-145 West 46th Street, will transfer 87,000 square feet of air rights to developer Extell Development. Air rights are the legal right to build in the space above a property; when a landowner does not use them, they can often be sold to a neighboring developer who wants to build taller than its own lot would otherwise allow.

A proposed order filed Friday in New York Supreme Court in Manhattan, reported by Crain's New York Business, states that Extell founder and chairman Gary Barnett signed a purchase and sale agreement with the church in December 2025. The church's rector, Sammy Wood, represented the congregation in the deal.

According to the report, the proceeds will go toward general maintenance of the church property and several community initiatives focused on helping New Yorkers in need. Ten percent of the funds will go to the Episcopal Diocese of New York.

The sale exhausts the church's remaining air rights. It previously transferred another 131,000 square feet to the Durst Organization for an office tower at 114 West 47th Street, according to Commercial Observer.

With the St. Mary the Virgin rights in hand, Extell can build a larger project at 570 Fifth Avenue, one block east of the church. The planned 32-story commercial development spans the blockfront between West 46th and West 47th Streets, will cover more than 1 million square feet, and is set to house Manhattan's first IKEA store, The Christian Post reported.

St. Mary the Virgin is far from alone in turning skyward for support. Many churches across New York City's five boroughs have sold air rights to private developers over the years. The church's deal with Extell ranks as the sixth most lucrative church air rights sale on record, according to the report.

At the top of that list is St. Patrick's Cathedral, which sold some 525,000 square feet of development rights on Park Avenue for $164 million in 2023. Extell is also reported to be in contract to buy 123,000 square feet of air rights from St. Thomas Church on Fifth Avenue for $36 million, and to have paid $39.9 million to the Metropolitan Club for 135,000 square feet of rights for another planned tower.

The St. Mary the Virgin sale still requires court approval of the proposed order, and the church building itself is not being sold. What is changing hands is unused building capacity above a landmarked house of worship, converted into resources to keep its doors open and its ministry going in the heart of Manhattan.