The Real Deal New York

Ashkenazy to buy Avalon Chrystie Place for $400M

Development firm takes first step into NYC residential market

May 28, 2014 08:30AM

avalon

229 Chrystie Street (Inset: Ben Ashkenazy)

Ashkenazy Acquisition is in contract to pay $400 million for Avalon Chrystie Place, a Lower East Side complex with 361 rental units and the 72,300 square-foot Whole Foods space. The deal would mark the developer’s first venture into residential real estate in the city.

Real estate investment trust AvalonBay Communities is set the sell the building at 229 Chrystie Street. AvalonBay had partnered with Phipps Houses and retail consultant Williams Jackson Ewing in 2005 to develop the 14-story, Arquitectonica-designed apartment complex on the 1.3-acre site along Houston Street. The developers made a deal with the city to construct a $14 million, 42,000-square-foot fitness center with a pool – among other features — that residents can access.

Of the 361 units, 72 of them are affordable housing; the rest is market rate. Only 5 percent of the apartments is vacant. The two available units are a studio leasing for $3,000 per month and a two-bedroom that rents for $6,000 per month, the New York Post reported.

In 2010, AvalonBay Communities settled a federal discrimination lawsuit against Avalon Chrystie Place that alleged a violation of the Fair Housing Act, as previously reported. The 2008 lawsuit had claimed that the building was not constructed to be accessible to disabled people. [NYP]Mark Maurer

5 Responses to “Ashkenazy to buy Avalon Chrystie Place for $400M”

  1. May 28, 2014 at 8:49 am, moneytalks said:

    No, if I have good memory it is not their first. They are planning something huge in Atlanta. It will be condos, retail and hotel. Ben Ashkenazy is a quiet billionaire in this business. That is why.

  2. May 28, 2014 at 10:17 am, HughGass said:

    “Only 5 percent of the apartments is vacant.”
    I wouldn’t say “only” … 5% is quite a lot if you look at the city vacancy rate.

  3. May 28, 2014 at 10:48 am, WannaBeLandlord said:

    Without knowing the specifics it seems like a decent deal for all parties. Avalon REIT gets a great return, and will continue to build new apt. complexes on cheaper land. I imagine Ashkenazy will get a decent ROI from the rentals & Whole Foods.

  4. May 28, 2014 at 3:10 pm, stanka said:

    Hopefully they can knock this building down and start from scratch. One of the original eye sores that have lines the city in the past decade. The same materials are used at Duane REades and TD Banks !!. The designed dialed it in and came out the other end with an ugly city block

  5. May 28, 2014 at 4:13 pm, OriginalBobtheBuilder said:

    This deal makes sense. LES still on the rise

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