Extell abandons Upper West Side condo plans

New York /
Jun.June 26, 2008 02:34 PM

 
Extell Development has abandoned plans to convert a six-story pre-war building on the Upper West Side to condos and instead has sold the residential building for $44 million, nearly doubling its investment in four years.

Extell sold the 86-unit apartment building at 10 West 65th Street to Touro College this month, according to city property records. A school spokeswoman said it would be used for rental housing for students attending its Lander College for Women/The Anna Ruth and Mark Hasten School, located at 227 West 60th Street.

Gary Barnett, Extell’s president, said the company had floated two proposals for the building, either upgrading it and keeping it as a rental or converting it to condos. After receiving several offers for the building it decided to sell, he said.

“I was a simple real estate deal,” Barnett said. “You buy something for something and you get a good offer for more and you sell it. It saved us a lot of hard work.”

Extell bought the building, on Central Park and near Lincoln Center, in 2004 for $23 million. Masskey Knakal listed the property for $60 million.

Residents said the proposed condo conversion failed after not enough tenants supported the plan. Barnett, however, said the residents had nothing to do with the sale.

Tenant Fred Beckhardt, who has lived in the building for 50 years, said most tenants were rent-stabilized or rent-controlled, so he did not fear a dramatic rise in rents would come along with the high sales price.

But Beckhardt said Extell had not renewed leases over the past few years, leaving more than a third of the apartments empty.

Barnett said most of the empty apartments had been undergoing substantial renovations.

“The tenants would have gotten a really beautiful building if we had completed our plans, but that is the way it goes,” he said.

Olga Kitsakos, an 88-year old rent-controlled tenant who has lived in the building for 60 years, said she was pleased with the sale.

“So far I am optimistic and look forward to what the college will do,” she said. “It will be lovely to have young people in the building again.”


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
RXR Realty's Scott Rechler with 75 Rockefeller Plaza (Getty, David Shankbone/Wikimedia)
RXR Realty serves American Girl with a lawsuit
RXR Realty serves American Girl with a lawsuit
SL Green's Marc Hollday, 635-641 Avenue of the Americas, Infor's Kevin Samuelson. (Infor, SL Green)
Software company Infor renews 90K sf Chelsea lease
Software company Infor renews 90K sf Chelsea lease
626 Lafayette Avenue in Bedford-Stuyvesant and 23-14 96th Street in East Elmhurst (Google Maps)
Two landlords hit with big fines for SROs, resi additions
Two landlords hit with big fines for SROs, resi additions
From left: 909 Third Avenue, 79 Fifth Avenue, 240 West 37th Street and 27 East 62nd Street (VNO, Cercone Exterior Restoration, Google Maps)
These were the largest Manhattan real estate loans in April
These were the largest Manhattan real estate loans in April
RGB chair David Reiss (iStock, Brooklyn Law)
City board casts preliminary vote in favor of rent hike
City board casts preliminary vote in favor of rent hike
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...