The Real Deal New York

RFR pays $22M for 14 UES rent-stabilized units at Philip House

Cheshire Group converted 79-unit building into condos in 2013
By E.B. Solomont | July 05, 2016 02:01PM

Aby Rosen and 141 East

Aby Rosen and Philip House at 141 East 88th Street on the Upper East Side

Aby Rosen and Michael Fuchs’ RFR Holding bought a block of rent-stabilized units at the Cheshire Group’s Philip House condominium conversion for $22 million, or nearly $1.6 million per unit on average, sources told The Real Deal.

The developer bought a total of 14 apartments in the 12-story building at 141 East 88th Street.

“They [are] taking a long-term outlook for the investment,” according to broker Mark Zborovsky, who represented Cheshire. “In three years it could be worth twice as much.” The deal closed last week, he said.

The deal included nine two-bedrooms of varying sizes, as well as four three-bedrooms and a one-bedroom apartment.

Cheshire acquired the 79-unit building, located on Lexington Avenue between 88th and 89th streets, from Rhinelander Real Estate Company for roughly $106 million in 2011. The developer converted the block-long building to condos in 2013.

Last month, a market-rate four-bedroom unit spanning 2,615 square feet sold for $5.35 million. A $16 million penthouse, measuring 4,710 square feet, is in contract, according to StreetEasy.

The Philip House deal is the latest for RFR and Cheshire.

Last year, Rosen and Fuchs‘ firm paid $32.5 million for a block of 33 rent-regulated apartments at Devonshire House, Cheshire’s condo conversion at 28 East 10th Street in Greenwich Village. and Richard Wilpon’s Sterling American Property bought the 131-unit building for $110 million in 2008.

Last week, RFR paid $18.7 million for an Upper East Side rental building.

The 18-unit building at 9 East 75th has four rent-stabilized apartments and one commercial unit. Seller Irvine Realty Group purchased the property for $17.9 million in 2015.

Earlier this month, RFR went into contract to sell its office tower at 275 Madison Avenue for $270 million to RPW Group.