David Lichtenstein’s Lightstone Group sold a 121-unit rental building to Mallory Management for $72.5 million, or more than $1,000 a foot, sources told The Real Deal.
The seven-story building at 85 East 10th Street, located between Third and Fourth avenues, spans 69,073 square feet and consists mostly of free-market apartments.
Lightstone acquired the property for $75.4 million as part of a six-building, $127 million portfolio deal in May. The company has plans to build a 300-key Moxy hotel on one of the other parcels it acquired at 112 to 120 East 11th Street as part of the deal.
Mallory Management is a Great Neck, N.Y.-based landlord led by Steve Beberman. In 2014, Mallory sold a six-story Chelsea rental building at 119-125 Seventh Avenue for $35.7 million. Beberman said his firm plans to revamp the property.
A Meridian Capital Group team including David Schechtman, Lipa Lieberman and Abie Kassin brokered the transaction for the East 10th Street building. The brokers declined to comment.
Lightstone’s Mitchell Hochberg told TRD that the company had always planned to sell the building. Construction on the Moxy is slated to be completed by 2018.