The Real Deal New York

Madison Realty Capital buying UWS rental for $86M

Rosario Candela-designed building at 915 West End Avenue has 94 apartments
By Hiten Samtani | May 18, 2016 08:00AM

915 West End Avenue

915 West End Avenue on the Upper West Side (inset, from left: David Ash and Josh Zegen)

Madison Realty Capital is in contract to purchase an Upper West Side rental building at 915 West End Avenue for $85.5 million, sources told The Real Deal.

The 120,000-square-foot, Rosario Candela-designed property at West 105th Street has 94 apartments, 41 of which are rent-stabilized. The seller was a partnership between Millhouse Peck Properties — an investment firm run by Nancy Green, Eric Gray and Joshua Sacks — and longtime owners the Lichter family. In April 2015, they filed plans to convert 43 of the units to condominiums with a projected sellout of $146 million, but those plans never came to fruition.

The deal with Madison Realty CapitalTRData LogoTINYis set to close in the next few months for a little over $700 per square foot. Prince Realty Advisors’ David Ash and Peter Hungerford, who were the sole brokers on the deal, declined to comment. The city’s Department of Finance estimated the building’s net operating income in 2015 was $1.8 million.

Madison, which is led by Josh Zegen, Brian Shatz and Adam Tantleff, declined to comment. But sources said the firm, which has other holdings in Upper Manhattan, plans to renovate the property and continue to operate it as a rental building.

Madison’s recent acquisitions include the Buchanan, a 16-story, 289-unit rental in Midtown East for which it paid $270 million in partnership with USAA Real Estate, and the “Brooklyn Whale Building” in Sunset Park, for which it paid $82.5 million.

The firm recently raised $695 million for its latest debt fund.

Kyna Doles contributed reporting.