The Real Deal New York

Starwood buys West Village rental for $68M

Rockrose converted Shepherd House on West 10th Street into apartments in 1979

May 30, 2014 02:30PM
By Hiten Samtani

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Barry Sternlicht and the Shepherd House at 277 West 10th Street

Barry Sternlicht and the Shepherd House at 277 West 10th Street

Barry Sternlicht’s Starwood Capital Group paid $68.2 million for the Shepherd House, a 137,589-square-foot, 144-unit rental building at 277 West 10th Street in the West Village, according to property records filed with the city Thursday.

The seller is listed in property records as Vill-Shepherd Equities Corp. Shepherd House was built in 1893 as an industrial building, and converted by Henry Elghanayan’s Rockrose Development into apartments in 1979. The 12-story property has apartments ranging from studios to three bedrooms, with an average rental price of $63 per square foot, according to StreetEasy.

Representatives for Starwood declined to comment, and Rockrose representatives weren’t immediately available for comment. In March, Starwood partnered with Crown Acquisitions to purchase the Old Navy store building in Herald Square for $250 million, as TRD reported. The site on which that property sits could be redeveloped into a 300,000-square-foot retail and hotel tower.

  • MGM

    Why so cheap????

    • HitenSamtani

      Hey MGM, guessing that a ton of the units are rent-stabilized- haven’t been able to verify that yet

      • Jay

        Hiten, How does rent-stabilized add up with $63 per foot

      • Graveshift

        The deal was flipped for a rumored $100 Million profit. Hence why the
        recorded sale was the original contract price. Dont get too excited,
        deal was bought for $150M plus.

  • ScottJ

    unless the units are in terrible shape this is a steal of a deal.

  • Graveshift

    $68M x 2 and you’re still $14M short of the sales price

  • I call BS

    This doesnt sound accurate at all.

  • OriginalBobtheBuilder

    I think someone got on their knees and blew for this one…. Can easily make 100% with a flip

  • ralphpetrillo

    Sounds to cheap, so what gives. 144 apartments times one million is 144 million. Why would he be offered them at 68 million? how long did they advertise?

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