The Real Deal New York

Here’s the next office development coming to Chelsea

REEC is planning a 100K-sf project on Tenth Avenue
By Kevin Sun | December 12, 2018 05:00PM

A rendering of 118 and 124 Tenth Avenue and a current view of the property (Credit: Real Estate Equities Corporation and Google Maps)

Real Estate Equities Corporation, an under-the-radar Midtown-based property investment firm, is building a 10-story office building near the southern end of the High Line.

The roughly 100,000-square foot building will include retail space on the ground floor, according to documents filed with the Department of Buildings on Wednesday. REEC did not immediately respond to a request for comment.

REEC acquired the leasehold for the property, which consists of adjacent lots at 118 and 124 Tenth Avenue, for $21 million in January last year.

The developers secured a $10 million leasehold mortgage from Roc Capital for the acquisition, which was extended with a $3.25 million gap mortgage in October.

REEC also acquired the leasehold for a St. Marks Place assemblage last year, with plans to develop an retail-and-office building there as well.

The adjacent Chelsea lots, currently occupied by Mediterranean restaurant and bar The Park, are owned by Benny Barmapov of Staten Island, according to city records.

Chelsea and the Meatpacking District have seen a number of recent office plays. Google purchased the Chelsea Market building for $2.4 billion earlier this year, and L&L Holding Company and Normandy Real Estate Partners paid $880 million for Terminal Stores. The partners — who are also in talks to bring Allianz into the deal — are planning to create a retail strip on the site and convert the 500,000 square feet of storage space into offices. They’re estimating that the penthouse office could rent out at up to $135 per square foot.