The Real Deal New York

Ex-Chelsea club site sells for $81 million

Lexin Capital picks up West 28th office building that was once home to Shadow Nightclub

March 18, 2014 09:40AM

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229 West 28th Street

229 West 28th Street

A Cheslea office building that once housed a much maligned neighborhood club, and was expected to fetch up to $90 million in a sale, has changed hands.

The 12-story, 156,000-square-foot building at 229 West 28th Street, long home to Shadow Nightclub — which drew complaints from area residents and has served lately as an office building — was sold to Upper East Side-based developer Lexin Capital for $81.5 million, according to financial records cited by DNAinfo. The firm, which picked up the property from former owner Joss Realty Partners in a March 3 deal, did not respond to the news site’s request for comment. Joss Realty Partners, founded by Steven Klein and Larry Botel, purchased 229 West 28th Street for $48.1 million in 2007, according to city records.

The property hit the market in late 2013 and was expected to fetch as much as $90 million, as The Real Deal reported at the time. The Jones Lang LaSalle investment sales team of Richard Baxter, Jon Caplan, Scott Latham and Yoron Cohen had the exclusive listing, insiders told The Real Deal in late October.

The club’s closure was the subject of a State Supreme Court move in 2012, which charged the nightspot with placing partiers and neighbors in danger. Owner Steven Juliano relocated the spot to the Upper West Side last year, where it remains in operation.

Meatpacking club Provacateur’s team was granted approval to launch a new operation in Shadow’s former space in February 2013, but the details have yet to be ironed out, according to DNAinfo. [DNAinfo] Julie Strickland

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