City makes $250M deal with Peebles, Chetrit Group for landmarked LoMa buildings

March 06, 2013 09:30AM

In a nearly $250 million deal, the city will sell two Lower Manhattan landmarked buildings to the Chetrit Group and the Peebles Corporation.

Peebles Corporation will pay $160 million for 346 Broadway, a 13-story Building Currently Being Used By The New York City Criminal Court. Peebles will develop a mixed-use commercial, residential and hotel property, and as part of the deal, 16,000 square feet of the property will be converted into a digital arts and media space for public use.

“We are honored by the trust Mayor Bloomberg and the City of New York have placed in us by awarding the Peebles Corporation such a significant and iconic landmark,” said Don Peebles, principal of the Peebles Corporation, who recently discussed his plans for redeveloping Harlem with The Real Deal.

The city also announced that the Chetrit Group will pay $89 million for 49-51 Chambers Street, also currently being used by a city agency. “The Chetrit Group looks forward to working with the City and the Lower Manhattan community as this project moves forward,” said the company’ chairman Joseph Chetrit. Chetrit is expected to convert the property into a mixed-use residential and retail development. —Hiten Samtani