Related gets Chelsea office building for $93M

December 20, 2011 02:35PM

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Pembrook Capital CEO Stuart Boesky and 511 West 25th Street (building credit: PropertyShark)
A Related Companies private equity fund has purchased a nine-story office building near the High Line for $93 million, or $450 per square foot, Crain’s reported.

The 195,000-square-foot property, at 511 West 25th Street, between 10th and 11th avenues, was controlled by Pembrook Capital. Pembrook took ownership in May 2010 after the then-owners failed to repay a loan. According to public records, the building was previously controlled by Halcyon Real Estate Partners, which picked it up for $48.75 million in 2008.

Since taking control, Pembrook has doubled the building’s occupancy to 90 percent and has increased the rent to about $50 per square foot. Tenants include electric car manufacturer Telsa Motors and Bismark Phillips Communication and Media.

The building attracted a lot of interest from potential buyers, according to Pembrook CEO Stuart Boesky, but about half of them were deterred by a lack of financing. [Crain’s]