The Real Deal New York

1031 investors move fast to close on Hell’s Kitchen buy

Group pays $21M for pair of walk-ups
By Rich Bockmann | November 24, 2014 05:10PM

A real estate investment group looking to execute a 1031 exchange acted quickly to close on a pair of Hell’s Kitchen walk-up buildings for $21 million.

The group went into contract fewer than 30 days ago for the purchase of the pair of six-story buildings at the northeast corner of 9th Avenue and 54th Street.

The buildings, 824 and 826 Ninth Avenue, hold 42 apartments and about 25,000 square feet of retail space across five units, including the corner space occupied by the El Centro restaurant. Seller ROL Realty had owned the buildings since 2000.

The buildings are four blocks north of Property Markets Group’s and JDS Development Group’s condo conversion of the Ralph Walker-designed Stella Tower and about two blocks east of Two Trees’ Mercedes House.

Ivan Hakimian, along with Eli Scharf of HPNY, was involved in the transaction.

He noted that the Metropolitan Transit Authority owns a large parking lot across the street that could one day support a sizeable residential development.

Rents for two-bedroom apartments in non-doorman buildings in Midtown West were up 1.7 percent in October from the previous month, according to MNS’s rental report.