Developer Harry Macklowe has finally closed on his purchase of 737 Park Avenue for $360 million, the Post reported, one of the city’s pre-eminent rental apartment buildings. Los Angeles-based CIM Group, the developer of the Drake Hotel site, is thought to be Macklowe’s investment partner in the deal.
Macklowe is expected to convert the 21-story, 103-unit building into condominiums. The majority of the building’s units are currently market-rate rentals though some are rent-stabilized.
The building, on the corner of 71st Street, was previously owned by the Katz family who, for a long time, couldn’t come to a decision on whether or not to sell.
As The Real Deal previously reported, the acquisition marks the most expensive residential building purchased for conversion since Maurice Mann and Africa Israel bought the Apthorp for $391 million in 2007, data from Real Capital Analytics shows. The sale price was approximately $250 million, but capitalization, financing and associated costs inflated the total value of the deal to $360 million, the Post said.