The Real Deal New York

San Fran investment firm pays $21M for Hell’s Kitchen building

Five-story building on 10th Avenue last sold for just $3M in 2011

June 12, 2015 02:35PM
By Tess Hofmann

640-644 Tenth Avenue (inset: David Sjchechtman, top, and Michael Wahba, bottom)

640-644 10th Avenue in Hell’s Kitchen (inset: David Schechtman, top, and Michael Wahba, bottom)

SPI Holdings, a San Francisco-based investment firm, is breaking into Hell’s Kitchen with the $21 million purchase of a five-story apartment building, The Real Deal has learned. 

The property, at 640-644 10th Avenue between West 45th and 46th streets, contains 24 rental apartments including one- and two-bedrooms, and has three vacant retail units at the base.

Midtown-based investors Michael Wahba and Salomon Smeke of Salt Equities owned the property for about four years, having paid $3.2 million in 2011.

The property spans more than 19,000 square feet, working out to a purchase price of $1,084 per square foot.

David Schechtman and Abie Kassin, who left Eastern Consolidated in April to join Meridian Capital Group’s new investment sales arm, represented both sides in the deal. Eastern’s Adelaide Polsinelli and Jeffrey Rosenfeld also worked on the deal.

“The retail and residential components of this turnkey property were both undervalued relative to a quickly rising Hell’s Kitchen submarket,” Kassin said.

Late last year, SPI bought a Lower East Side rental building, as TRD reported.

Representatives from Dennis Wong’s SPI Holdings did not immediately respond to a request for comment.

Mark Maurer contributed reporting.