The Real Deal New York

Joe Chetrit revealed as buyer of SL Green’s 1231 Third Avenue

Chetrit closed on $144M purchase of Upper East Side site on Tuesday
By Eddie Small | October 31, 2018 10:35AM

From left: SL Green’s Marc Holliday, 1231 Third Avenue, and Chetrit Group’s Joe Chetrit (Credit: SL Green)

The sale of SL Green’s 1231 Third Avenue closed on Tuesday, and the buyer was Joe Chetrit of the Chetrit Group, according to sources familiar with the deal.

Chetrit purchased 1231 Third Avenue along with a development assemblage at 252-254, 257, 259 and 260 East 72nd Street for $144 million. The deal included $120 million in financing from SL Green’s lending division.

The company will likely plan some type of residential tower for the East 72nd Street assemblage and continue to operate 1231 Third Avenue as is, while also looking to lease up its retail space.

A team from Robert Verrone’s Iron Hound Management brokered the sale and financing.

Iron Hound and SL Green declined to comment on the deal. Chetrit did not immediately respond to a request for comment.

The building at 1231 Third Avenue stands four stories tall and spans about 41,000 square feet. It contains 20 apartments — all occupied — and about 16,000 square feet of retail space, which is 70 percent occupied.

SL Green has sold off several of its properties lately, including the office portion of 1745 Broadway in Midtown for $633 million  and 175-225 3rd Street in Gowanus for $115 million.

The Chetrit Group has also partnered with Mount Sinai Properties to build a 122-unit apartment complex at 43-21 64th Street in Woodside,  and Michael Stern’s JDS Development Group recently bought them out of the 73-story mixed-use development at 9 Dekalb Avenue in Downtown Brooklyn for almost $60 million.