The Real Deal New York

Stellar, Imperium near deal for 220 Fifth Ave. leasehold

21-story NoMad office building also has resi, retail and storage space

November 29, 2016 05:44PM
By Mark Maurer Twitter_logo_blue copy

Larry Gluck and 220 Fifth Avenue

Larry Gluck and 218-220 Fifth Avenue in NoMad

Larry Gluck’s Stellar Management and Imperium Capital are close to entering contract to acquire the leasehold interest for the 21-story mixed-use building at 218-220 Fifth Avenue in NoMad, sources told The Real Deal.

The 150,900-square-foot building at the corner of East 26th Street mostly holds offices – 125,000 square feet – but also has small residential, retail and storage components, records show.

Sources familiar with the building pegged the value of the leasehold at around $800 per square foot, or in the $120 million-to-$150 million range depending on the square footage of leasable space included.

Sources said Stellar and Imperium are expected to sign a contract by year’s end. There are no brokers, though Progress Capital Advisors’ Kathy Anderson is serving as an adviser on the deal.

The deal would result in the creation of a leasehold for the building. Dino Tomassetti Jr.’s Brooklyn-based Dino & Sons Realty Corporation has owned the property outright since 1991, records show. In 2014, Tomassetti secured a $35 million loan from New Jersey-based Investors Bank, as brokered by Progress Capital.

Anderson declined to comment, as did Stellar. Imperium and Dino & Sons could not be immediately reached.

Office tenants include law firm Weiner Millo Morgan & Bonanno, pharmaceutical news publication Chain Drug Review and real estate investor Atit Jariwala’s Bridgeton Holdings. Belgian Beer Café occupies the retail space on the bottom two floors.

Public policy organization Demos recently vacated a three-floor, 13,860-square-foot spread for a space at 80 Broad Street in the Financial District. The company had the largest footprint in the building, according to CoStar data.

Asking rents for NoMad office space are in the $50s and $60s per square foot.

The building, constructed in 1912 and formerly known as the Croisic Building, is part of the Madison Square North Historic District.

Stellar and Imperium previously partnered on the 750,000-square-foot office-and-retail project One Soho Square, a merging of two buildings they bought for $200 million in 2012. In August, Stellar bought out Rockpoint Group’s 25 percent stake in the project, thus valuing it at $650 million.

Elsewhere in NoMad, the Schwalbe family is looking to sell the land beneath its 12-story office building at 149 Madison Avenue, near East 32nd Street.

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