HFZ Capital Group joined Vornado Realty Trust in its previously reported acquisition of 11 East 68th Street, and will take control of the 41 residential units while Vornado presides over the 100-foot-long Madison Avenue retail space, the Wall Street Journal reported.
In September, Vornado entered into contract to buy the Upper East Side rental building for $170 million, a $21.8 million discount on the amount the sellers, ABRO management, paid for it in 2008. But according to the Journal, the Steven Roth-led firm will only hold on to the retail space, which is currently rented by clothing retailers Malo and Joseph in deals that expire later this year.
Meanwhile, the Journal speculated that HFZ will contemplate converting the rental units to condominiums, a task it has already undertaken at the Setai Wall Street. However, HFZ Capital founder Ziel Feldman said he has no plans to convert the units as of now.
Previously published reports said most of the units in the building were renting for market rates. [WSJ]