The Real Deal New York

Koch-era low-income complex trades for $17M

April 03, 2013 10:30AM

A 130-unit city-owned low- and moderate-income building, constructed in 1987 at the bequest of former New York City Mayor Ed Koch’s administration, has sold to an unidentified private investor for $17 million.

Logan Plaza, at 1423-25 Amsterdam Avenue, was the first newly constructed rental project to be developed in Harlem without federal assistance in more than a generation and is governed by a regulatory agreement with the Housing Assistance Corporation, a subsidiary of the city’s Housing Development Corporation. It was part of Koch’s 10-year housing plan.

The deal was brokered by Shimon Shkury, Victor Sozio, and Michael Tortorici of Ariel Property Advisors. The building comprises approximately 120,570 gross square feet and has 74 one-bedroom, 48 two-bedroom and eight three-bedroom apartments as well as 40 outdoor parking spaces.

“Logan Plaza is one of only eight New York City ground up developments that were placed into service with a HAC agreement,” said Sozio, a vice president at Ariel. “This deal presented a number of complexities including expiring subsidies, expiring tax benefits, and income restrictions on tenancy. The assignment made for an interesting challenge from start to finish.” – Katherine Clarke