Starrett Corporation sells Hell’s Kitchen building for $110M

Standard Property Company is the buyer of the Section 8 complex

UPDATED, Oct. 5, 5:36 p.m.: A Standard Property Company subsidiary shelled out $110.3 million the 151-unit Hell’s Kitchen affordable housing complex Polyclinic Apartments at 341 West 50th Street, the firm announced Thursday.

The deal ensures the tenants will pay below-market rents “for the long term,” the subsidiary, Standard Communities, said. As before, all but one of the apartments will stay under a project-based federal Section 8 contract.

Property records indicate Starrett Corporation is the seller.

Standard secured a so-called Article XI tax abatement, which is earmarked for construction or rehabilitation of affordable housing, according to co-founder Scott Alter. He added that around 20 percent of the units will be earmarked for homeless New Yorkers.

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The former hospital was converted into apartments in 1979.

Ariel Property Advisors’ Victor Sozio, Shimon Shkury, Mike Tortorici and Howard Raber brokered the sale and Walker & Dunlop provided a $94 million acquisition loan. Sozio did not immediately return a request for comment.

Lynne Patton, regional administrator of the federal Department of Housing and Urban Development, touted the deal as an example of the “effective public-private partnership that Secretary Carson and this administration have championed.”