Jeffrey Dagowitz adds 83K sf in air rights to Chelsea site

Hotelier is planning a development that's nearly 250K sf
January 04, 2017 09:00AM

142 West 24th Street and Church of St. Paul de Vincent

Hotelier Jeffrey Dagowitz has snapped up another 83,000 square feet of air rights in Chelsea — where he’s now assembled a development site with 243,000 buildable square feet.

The site, which cost a total of $79.4 million to date, covers a large chunk of West 23rd and West 24th streets between Seventh Avenue and Sixth Americas. In the latest deal, Dagowitz’s JHG Holdings shelled out $17.7 million to buy 49,000 square feet of air rights from a residential co-op at 130 West 24th Street for $9.3 million and 34,000 square feet of air rights from a condominium at 124 West 24th Street for $8.4 million.

Dagowitz has been cobbling together the site for several years.

Previously, he struck a deal to buy 26,000 square feet of air rights at 136 West 24th Street. The deal fell through and JHG filed a $22 million suit against the owner, 136 Loft Corp., for breach of contract. The suit has been settled, and Dagowitz picked up air rights from 127 and 131 West 24th streets instead.

In November, Dagowitz bought three Chelsea properties from the Archdiocese of New York for $50.4 million. The properties included the Church of St. Vincent de Paul at 123 West 23rd Street as well as 116 West 24th Street and 120 West 24th Street, which together span 32,600 square feet.

Previously, Dagowitz picked up the former Chelsea Bed & Breakfast building at 131 West 23rd Street, next to the church, for $11.3 million in 2015. That property’s prior owner filed plans for a hotel and residential project; while Dagowitz filed for demolition permits in May 2015, he’s reportedly evaluating his plan for the entire site.

This past November, Dagowitz obtained a $65 million acquisition loan to acquire the church properties from Bank of America. That loan paid off $12.6 million of debt on the bed and breakfast. [CO] – E.B. Solomont