Gaia Real Estate and Acro Group closed on the $75 million acquisition of a Murray Hill rental building.
The developers plan to convert the Montrose, a 97-unit rental building at 308 East 38th Street, into condominiums, Commercial Real Estate Direct reported. The seller was UBS Realty Investors, which bought the building for $59.2 million in 2006.
“This new project is in line with Gaia’s strategy to add value by upgrading properties in order to deliver enhanced returns to our investors,” Danny Fishman, Gaia’s managing partner, said in a statement. The condos will fall into the so-called affordable luxury category with “reasonable price points,” the statement said.
Nearby, Gaia recently converted rental units into condos at the Corinthian, located at 330 East 38th Street. Gaia paid $147 million to the Spitzer family in May for the 144 units. [CRE News] – E.B. Solomont