The Real Deal New York

Crescent Heights withdraws $337.5M UES condo plan

Developer purchased 165 East 66th for $230M in 2013

February 02, 2016 08:00AM
By E.B. Solomont


From left: Sonny Kahn and 165 East 66th Street

Miami-based developer Crescent Heights withdrew plans for a $337.5 million condominium conversion on the Upper East Side, a neighborhood that’s experiencing a residential construction boom of late.

The firm, which bought the 20-story luxury rental building at 165 East 66th Street in 2013, originally sought to convert the 150 apartments into condos in February 2014, according to filings submitted to the state Attorney General’s office.

But the plans were never approved by the AG, and Crescent withdrew the offering plan in December, according to filings recently reviewed by The Real Deal.

Crescent — one of the most prolific in Miami Beach — paid $230 million for the 241,334-square-foot property from a partnership between the California Public Employees’ Retirement System, the largest private pension fund in the U.S., and investment management company GID.

Rising 20 stories, the building has a mix of units ranging from studios to four bedrooms. Currently, there is a one-bedroom for rent asking $4,000 a month as well as a four-bedroom asking $22,500 a month.

Representatives of Crescent, which was co-founded by Sonny Kahn, Russell Galbut and Bruce Menin, did not immediately return a call seeking comment.

But the offering plan is one of the priciest to be withdrawn in recent memory. Last year, Extell Development withdrew the offering plan for its Central Park Tower amidst talks to bring on a capital partner, as TRD reported. Sources speculated that developer Gary Barnett and the forthcoming partner would refile the offering plan under a new sponsor name.

On the Upper East Side, Crescent would be competing with hundreds of new units being planned thanks to the impending opening of the Second Avenue Subway. Some 900 units are being developed across 19 projects on the Upper East Side between 59th and 96th Streets, according to Halstead Property Development Marketing. Those projects include Related Companies’ 231-unit 205 East 92nd Street and Anbau’s 84-unit “Citizen360” at 360 East 89th Street.