Alfa Development in contract to buy former Hershey factory in Chelsea

$12M sale is pending approval of bankruptcy court
October 19, 2012 03:00PM

Alfa Development is in contract to buy a development site in Chelsea for $12 million, pending the approval of Bankruptcy Court, Crain’s reported. The site is located at 117-119 West 21st Street, between Sixth and Seventh avenues, and used to be a Hershey factory.

Alfa is now in a “stalking horse” contract to close on the nearly 19,000-square-foot property in an all-cash deal, though a better offer could come at an early November auction sale. As it currently stands, the property is a vacant four-story warehouse and Alfa entered contract in early September.

If the court approves sale, the property will come free of liens and the $12 million closing price would cover the nearly $5.5 million original principal balance of the loan.

As The Real Deal previously reported, the asking price for the site was $15.5 million; it was listed with David Schechtman, Alan Miller and Paul Nigido of Eastern Consolidated.

Yesterday The Real Deal reported that Alfa closed on a previously stalled Chelsea site on 14th Street. [Crain’s] —Zachary Kussin