The Real Deal New York

Stone Street buys Union Square rental building for $22M

Deal follows $123M purchase of Gramercy rental properties

September 25, 2015 06:00PM
By Rey Mashayekhi

16 East 18th Street

Jeffrey Kaye and 16 East 18th Street in Union Square

Jeffrey Kaye’s Stone Street Properties is following its acquisition of two Gramercy Park rental buildings with the $21.5 million purchase of another rental property, at 16 East 18th Street near Union Square.

Stone Street bought the 10-story building, located between Fifth Avenue and Broadway, from developer Uri Kaufman’s Ariel Associates. The property spans roughly 19,000 square feet and features eight residential units, as well as one commercial unit occupied by sportswear retailer Paragon.

Midtown-based Stone Street plans to refurbish the building, which houses an elevator, to create full-floor, loft-style rentals, according to sources with knowledge of the transaction. The developer closed Thursday on two adjacent Gramercy Park rental properties on East 22nd Street for $123 million, as The Real Deal reported.

In March, Stone Street sold a 16-building portfolio to Jared Kushner for $132 million and offloading five connected buildings on Elizabeth Street in Soho to Galil Management for $61 million.

Kaufman, who also heads Albany-based development firm Harmony Group, told a group of reporters last year that if he were governor for a day, he would take a number of measures to stimulate business in New York, including nixing the state’s scaffold law and rent regulations.