The Real Deal New York

HFZ shops block of unsold units in three buildings

Ziel Feldman's firm is offering 45 rent-regulated apartments in NoMad, UWS
By E.B. Solomont | May 11, 2018 05:20PM

From left: 235 West 75th Street Ziel Feldman and 88 and 90 Lexington Avenue (Credit: Getty Images)

Ziel Feldman’s HFZ Capital Group is shopping a block of 45 apartments in three of its condominium conversions for around $40 million, sources told The Real Deal.

The units are located at 88 and 90 Lexington Avenue in NoMad and at the Astor at 235 West 75th Street. All of the apartments are rent-regulated and are being offered at a discount to the price they’d fetch if they were being sold as vacant condos. The units comprise roughly 40,000 square feet, according to a source familiar with the marketing.

Mark Zborovsky, an agent who specializes in bulk sales and is not involved in the marketing of the residences, said large blocks of unsold units don’t come to market often. Over the past 18 months, he said, similar portfolios have traded for approximately 40 percent of vacant market value.

HFZ could not immediately be reached for comment.

At 88 Lexington, where HFZ launched sales in 2015, the average closed sales price for a condo is $3.7 million, according to StreetEasy. The average at 90 Lexington is $3 million and $4.7 million at the Astor. Sales also launched in 2015 at those buildings.

Sources said Feldman’s firm had also been offering units at 301 West 53rd Street, where it recently sold a small block of six apartments for an undisclosed price. The sale has not yet hit property records.

Last year, the developer also unloaded 46 apartments at its Chatsworth co-op conversion on the Upper West Side for $38 million. The buyer was an entity linked to the Safras, the Brazilian banking family.

Other similar deals have closed in recent years. Meadow Partners paid $61.3 million last year for 146 units at 733 Amsterdam Avenue, Larry Cohen’s 229-unit conversion. In 2016, Thor Equities picked up 71 sponsor units at the Apthorp condo building for $120 million. Cheshire Group and Sterling American Property also sold a block of 33 rent-regulated units at their Devonshire condo conversion to Aby Rosen’s RFR Realty for $32.5 million in 2015.

—Additional reporting by Hiten Samtani.