AEW buys West 43rd St. rental building for $170M

AEW Capital Management has paid about $170 million for New Gotham, a Hell’s Kitchen rental building developed by the Gotham Organization. The 34-story building at 520 West 43rd Street was built in 1998 and has 375 units.

Gotham tapped a CBRE team of Darcy Stacom, Paul Leibowitz and Bill Shanahan to market the property, which has six years left on its 421a tax abatement, the New York Post reported.

“It just made business sense,” Gotham president David Picket told the Post about the sale, “and it’s nice to have some powder.”

AEW closed the deal on Nov. 15, according to the newspaper. Current listings in the building range from a $2,495 studio to a $4,450 two-bedroom apartment.

In July, AEW paid Sitt Asset Management $63 million for 240 West 40th Street, a 160,000-square-foot Midtown West building that is the headquarters of fashion label Donna Karan New York, as The Real Deal reported. [NYP, 1st item] – Hiten Samtani