The Real Deal New York

HUBB NYC picks up Midtown South retail condos for $24M

60 Guilders and Carlyle Group are converting office building into commercial condos
By Rich Bockmann | December 08, 2017 02:45PM

18-28 West 33rd Street and Hubb NYC’s Johnny McCarthy

HUBB NYC Properties bought a handful of retail condominiums at 60 Guilders and the Carlyle Group’s Midtown South commercial condo conversion for $24 million.

The Midtown-based buyer paid $23.9 million to buy five commercial units spanning 21,110 square feet at 18 and 20-28 West 33rd Street, property records filed with the city Friday show. The square footage covers about 12,000 square feet of selling floor area, as well as space in the basement and on the mezzanine level.

Jesse Terry, HUBB’s acquisitions director, said the retail condos across from the Empire State Building “fit right into our strategy of high-quality street retail with good foot traffic.”

“The property has some near-term vacancy, and our plan is to improve the spaces and release them,” he said. A Hodges Ward Elliott team led by Will Silverman, Paul Gillen and Daniel Parker represented the sellers in the deal.

Kevin Chisholm and Bastien Broda’s 60 Guilders teamed up with the private equity firm Carlyle Group in 2015 to buy the 186,000-square-foot office property for $111 million from the Kamber Management Company, with plans to convert the space to office and retail condominiums as leases in the buildings expired.

The state Attorney General’s office last year approved the firms’ plan to sell 21 units across the two buildings, with a projected sellout of $206.6 million. The investors in September amended the condo-offering plan by trimming the total projected sellout by 5.4 percent to $195.37 million.

A representative for 60 Guilders couldn’t be immediately reached for comment.

HUBB, meanwhile, paid $38 million earlier this year to buy a retail condo and parking garage nearby at Continental Properties’ 325 Fifth Avenue.