JSR Capital, the Manhattan-based real estate investment firm headed by Africa Israel alumnus Jona Rechnitz, is planning to build a new condominium or hotel project at 238 Madison Avenue, between 37th and 38th streets, The Real Deal has learned.
The company acquired the site, which is currently home to an 11,243-square-foot multifamily townhouse, yesterday for slightly under $12 million, sources said. The building comes with 27,500 square feet of additional air rights, allowing for a new development of close to 40,000 square feet in total.
Ari Schwebel, a vice president at JSR, confirmed the deal, which was off-market and did not involve any brokers. He would not comment of the price JSR paid for the property.
The seller of the site is an entity linked to Olympic Diamond Corporation, headed by international diamond magnate Nissan Perla. Perla could not immediately be reached for comment.
The townhouse currently on the site, which has 14 apartments and two retail spaces, will likely be razed and replaced by a new tower, Schwebel confirmed. JSR is currently in the pre-planning stages of the development and is aiming to have solid plans in place within the next three to six months, he said.
The company is currently weighing the merits of building a 14-story condo building with full-floor apartments, versus the possibility of a boutique hotel concept. The neighborhood could command condo prices of $1,500 to $2,000 a square foot, Schwebel speculated.
JSR is working with BP Architects on developing plans for the property.