Slate Property Group and equity partner Avenue Realty Capital (ARC) have acquired a mixed-use apartment building at 401 East 50th St. in the Sutton Place neighborhood. Slate purchased the fee-simple interest in the 15,984 s/f property with 2,125 s/f of retail space for $13.95 million and will reposition the building into a high-end rental property. Slate has been one of the more active buyers of multifamily / mixed-use assets in New York City over the last 12 months. This is the 10th purchase made by Slate over the last year as it continues to add to its growing portfolio of New York buildings.
Transforming 401 East 50th St. into a Modern Luxury Property
The six-story property has been almost 90% vacant for many years, presenting Slate with a unique opportunity to quickly renovate the building. Over the next year, Slate will convert all vacant units into modern luxury residences with high-end finishes and reconfigured layouts to maximize efficiency. Unit improvements will include granite countertops, stainless steel appliances, marble bathrooms, recessed lighting, hardwood floors and crown and baseboard molding. Slate will also modernize the vestibules, hallways and stairwells, as well as replace the buildings boiler with a new gas boiler.
Premier Location and Architectural Structure
Sutton Place is one of New York City's most exclusive residential neighborhoods. 401 East 50th St. is steps away from the East River and has direct access to the city's central business corridor, Midtown, as well as the Queensborough Bridge, Grand Central Terminal and numerous subway lines.
Martin Nussbaum, principal and co-founder of Slate Property Group, said, "It is rare to find a predominately vacant building in a premier Manhattan neighborhood. This along with the architectural design of the property presents an incredible re-development opportunity. By repositioning the existing building and bringing in high-end retail tenants, we will maximize the building's value and add to the neighborhood's growth."
Udi Kore, principal and co-founder of Avenue Realty Capital, said, "we are very pleased with our joint venture with Slate as our operating partner and specifically with this deal, as it fits perfectly in our value-add multifamily investment strategy in New York and the surrounding areas. It is a valuable addition to our growing portfolio." Avenue Realty Capital has been an active equity investor in the multifamily / mixed-use segment of the market in New York City over the last 12 months. This is the 18th property funded by ARC over the last year and the firm continues to be an active investor in the market.
The deal was brokered by Clint Olsen and Jonathan Hageman from Cushman & Wakefield. Tags: