The Real Deal New York

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

Standard Property Company is the buyer of the Section 8 complex
By Konrad Putzier | October 05, 2017 04:20PM

From left: 341 West 50th Street, Scott Alter and Lynne Patton (Credit: HOM and Twitter)

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.

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.”