The Real Deal New York

JTRE pays $16M for NoMad property ripe for hotel

Jack Terzi's development firm owns at least 2 more properties in hip area

November 03, 2014 02:45PM
By E.B. Solomont

From left: Jack Terzi, 6-8 West 28th and 241 Fifth Avenue

From left: Jack Terzi, 6-8 West 28th Street and 241 Fifth Avenue

Midtown-based developer and brokerage JTRE Holdings is increasing its stake in NoMad, plunking down $15.5 million for two four-story buildings next to the NoMad Hotel, according to sources familiar with the deal.

Led by Jack Terzi, JTRE is under contract to buy 6-8 West 28th Street, its fourth property in the area, sources said. The deal includes two buildings with 20,000 square feet, combined, as well as 30,000 square feet in unused air rights. The developer is buying the building from an unnamed buyer in an off-market transaction.

Terzi could not be reached for comment, but sources said he is weighing options for the site, including a possible hotel development or ground-floor restaurant with offices above. The retail space would likely go for between $150 and $200 per square foot, while the office space could fetch north of $60 per square foot, sources said.

Terzi, who launched JTRE in 2008, owns at least two other properties in the area, including 31 East 28th Street and 241 Fifth Avenue, which JTRE bought for $6.8 million in April. The developer is under contract for a third, undisclosed building in the neighborhood, sources said.

NoMad – the neighborhood north of Madison Square Park – has been on the upswing, with a recent surge of retail on Broadway, from 23rd to 30th streets. Terzi’s new purchase is not far from the Lam Group’s development of a Sir Richard Branson-branded Virgin Hotel, which is slated to rise 38 stories at 1205-1225 Broadway with 100,000 square feet of retail space.

Ziel Feldman’s HFZ Capital Group is also putting up a mixed-use tower at nearby 3 West 29 Street, which the firm acquired for $26.2 million last year.  On the residential side, Steven Witkoff recently topped out 10 Madison Square West, with closings expected next year.

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