JDS, Property Markets’ investment in West 57th Street tower tops $217M so far

Jun.June 28, 2013 04:30 PM

In its quest to build a mammoth skyscraper on West 57th Street, a partnership led by Michael Stern’s JDS Development and Property Markets Group has invested $177.8 million to acquire both the Steinway building at 109 West 57th Street and its accompanying land lease, The Real Deal has learned.

The deal, which closed today, represents a total investment of $217.8 million — $131.5 million for the land lease and $46.3 million for the building — before construction on the prospective tower has even begun. The price tag includes $40 million to acquire the site next door at 107 West 57th Street.

The new tower, which will rise to more than 900 feet, will include condominium units as well as a sizable retail component, according to a statement from JDS. While initial plans for the 57th Street tower called for a 679-foot, 51-story condominium property on a 43-foot-wide lot, to be designed by architecture firm Cetra Ruddy, the acquisition of the Steinway building added air rights that will allow the developer to build much taller, The Real Deal previously reported.

JDS has not filed revised plans with the Department of Buildings, but the company said the tower would likely be completed in 2016.

Barry Sternlicht’s Starwood Capital Group, which had been a partner in the project when the plans called for a shorter tower, has since exited the partnership, JDS said.

The Corcoran Group represented Steinway in the sale of the building. Darcy Stacom of CBRE represented the seller of the leasehold, Wexford Capital.

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