Development firm Gorjian Real Estate Group acquired a Hell’s Kitchen rental building with 41,000 buildable square feet for $25.5 million, according to property records filed with the city today.
The four-story property at 312-314 West 58th Street, between Eighth and Ninth avenues, holds 10 apartments and retail tenants such as Subway and the Coliseum Bar and Restaurant. Both retail leases are long term, Justin Gorjian told The Real Deal.
Andrew Mohr, an attorney at Washington, D.C.-based law firm Cohen Mohr LLP, has owned the building since 2002. Before him, Mohr’s father, the late Lawrence J. Mohr, owned it for decades.
Justin Gorjian said his firm plans to renovate each unit as they become available. Rents will also see a bump. An apartment that previously listed for $2,000 per month is now on the market for $4,000 per month, he said.
“We didn’t buy this for development purposes,” Gorjian said. “It has a good capitalization rate and we want to maximize value.”
The Gorjians received a $12 million loan from San Francisco-based First Republic Bank, they said.
Brothers Justin, Cobby and Myron Gorjian are the sons of Gorjian Properties founder Gideon Gorjian, a developer of 75 Wall Street. Last year, they developed a condo-turned-rental conversion at 220 Saint Nicholas Avenue in central Harlem, as previously reported.
The building entered contract in March, records show. Ivan Hakimian and Kevin Esh of HPNY were involved with the deal. Hakimian was also involved with Acuity Capital Partners’ recent purchase of a rental building in Hamilton Heights, as The Real Deal reported.