The Real Deal New York

Naftali makes third purchase in UES assemblage play

Company bought 1039 Madison Avenue for about $26M
By Eddie Small and Mark Maurer | February 19, 2018 04:15PM

1039 Madison Ave and Miki Naftali (Credit: Getty Images)

The Naftali Group has purchased the third and penultimate building in its planned assemblage on the Upper East Side for roughly $26 million, according to sources familiar with the deal.

The company’s assemblage would span from 1039-1045 Madison Avenue between East 79th and 80th streets, and Naftali closed on its deal for 1039 Madison Avenue on Friday. The company purchased the property from Buchbinder & Warren in a deal brokered by Brandon Charnas and Adam Henick of Warwick Capital Management.

Charnas and Henick declined to comment on the sale, and representatives for the Naftali Group and Buchbinder & Warren did not respond to requests for comment.

Naftali purchased 1041 Madison Avenue in September for $21.1 million, and the company purchased 1045 Madison Avenue in October for $22.8 million, according to property records. The developer’s last remaining parcel is in the Davide Cenci building at 1043 Madison Avenue, where a deal is expected to close in about two weeks.

Together, the four parcels offer more than 60,000 buildable square feet. Naftali paid roughly $1,688 per buildable square foot at 1039 Madison, $1,370 per buildable square foot at 1041 Madison and $1,463 at 1045 Madison. Naftali is likely adding additional development rights from neighboring properties, sources said.

The Upper East Side assemblage marks Naftali’s reentry into purchasing New York real estate roughly two years after Miki Naftali said his company would focus on its active projects instead of seeking out new ones due to the prohibitively expensive price of land.

Ziel Feldman’s HFZ Capital Group appears to be putting an assemblage together on the Upper East Side as well, as The Real Deal reported last week. The company purchased 1135 Lexington Avenue in February for $22.5 million, a few months after purchasing 1131 Lexington Avenue for $7.1 million. HFZ’s plan could ultimately encompass seven parcels with more than 80,000 buildable square feet.