The Real Deal New York

Broad Street Development wants $130M for 200-unit Gramercy portfolio 

HFF's Scandalios shopping pair of rental buildings as condo conversion
By Rich Bockmann | April 29, 2015 01:40PM

Broad Street Development is shopping two rental buildings in Gramercy as a potential condo conversion and is targeting $130 million for the pair, The Real Deal has learned.

Broad Street, which made its first jump into the multifamily market when it bought the two buildings at 210 and 220 East 22nd Street with partner Crow Holdings three years ago, has hired a team led by Andrew Scandalios at HFF to market the property.

“These are not cookie-cutter apartments, but rather have a Downtown loft-style feel that is ideal for conversion to condominiums,” Scandalios said.

The buildings also work for investors looking to maintain them as rentals, Broad Street said.

The company and Crow put $4 million into improving the buildings after buying them for $85 million in 2012 from GID Investment Advisors, the partners said. Most of the 208 units across the pair of buildings are studios and one-bedrooms. Rents average around $3,450 a month, according to StreetEasy.

The properties are not far from the Naftali Group’s 57-unit condo building at 234 East 23rd Street, where all but three units are in contract after sales launched last summer.

Earlier this year Broad Street, headed by Raymond Chalme and Daniel Blanco, paid $178.5 million to buy a pair of rental buildings in Noho, where they plan to start a $3.5 million renovation. Last March, they sold 61 Broadway, a 786,000-square-foot Financial District office building, for $330 million to Scott Rechler’s RXR Realty.