The Real Deal New York

HFZ pays $575M for Extell’s UWS rental building

The Belnord sold for $1,000 per square foot, or $2.6 million per apartment

March 13, 2015 11:48AM

From left: Gary Barnett (top left), Ziel Feldman and the Belnord

From left: Gary Barnett (top left), Ziel Feldman and the Belnord at 225 West 86th Street

Ziel Feldman’s HFZ Capital Group paid $575 million for Extell Development’s the Belnord, a rental building on the Upper West Side.

HFZ and Extell entered contract in December, as first reported by The Real Deal. The 13-story building, located at 225 West 86th Street and built in 1909, includes 218 rental units, according to the Wall Street Journal. The price is more than $1,000 per square foot, or $2.64 million per apartment, according to the newspaper.

HFZ is developing two other condominium conversions on the Upper West Side.

Extell’s Gary Barnett, together with a group of investors that also included Property Market Group’s Kevin Maloney, paid $15 million for the property in 1994.

In the 1930s, the building was foreclosed on by lenders, the newspaper reported. Later on, the landlord and the tenants of the building entered decades of lawsuits and housing complaints. Half of the building’s tenants went on a 16-year rent strike. It’s unclear what Feldman’s plans are for the property, according to the newspaper. [WSJ] — Claire Moses

 

  • jfhg

    barnett #1 wowww

  • Lorenzo

    ALL HAIL GARY THE GREAT !

  • jay

    if gary is a seller i wouldnt want to be the buyer.

  • withering

    Dear Real Deal,

    You missed the lead to this story.

    Ziel Feldman, now of HFZ, owned the building previously.

    As part of PMG, he bought into the Belnord in 1994:

    http://www.nytimes.com/1994/10/29/nyregion/belnord-sale-leads-to-end-of-rent-fight.html

    He cashed in his Belnord chips the first time in 1996.
    Despite HFZ’s representation to the Community Board and the Landmarks Preservation Commission in its proposal to pillage and deface The Chatsworth – that he was responsible for the “Historic Restoration of the Belnord” – he didn’t own his piece long enough to lay a finger on it.
    A real journalist might also have reported on the status of Extell’s agreement with Tenants, which was declared void ab initio by the NYS Supreme Court last year as contrary to public law and policy.

    And lastly, what, exactly is the Belnord’s status? Condo? Co-op? Rental?
    How does HFZ plan to push Tenants out when Extell failed to do so, nearly defaulting on their loans in the process?
    C’mon Real Deal, step up and do some actual fact finding and reporting, rather than existing as the shrillest schill for REBNY & Co.

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