UPDATED, Feb. 22, 2019, 8:10 p.m.: A partnership between 60 Guilders and RCG Longview bought a student-housing building on the Upper East Side from Joseph Chetrit for more than $200 million.
The partners paid $212.5 million to buy the 506-unit building at 1760 Third Avenue, the brokers who negotiated the sale on behalf of the Chetrit Group told The Real Deal.
The new owners will be able to “add materially to the property’s value with a capital campaign and pre-existing relationships with the major tenants,” said Meridian Investment Sales’ David Schechtman.
The purchase price for the 19-story, 263,000-square-foot building works out to nearly $420,000 per unit, or slightly more than $800 per square foot.
Meridian’s Abie Kassin, Lipa Lieberman, David Benharouch and Mark Steinmetz worked alongside Schecthman to negotiate the sale.
The building is leased to a quartet of major institutions that use it for student housing: Educational Housing Services, the Laboratory Institute of Merchandising and the City University of New York’s Hunter College and Baruch College.
The Chetrit Group bought the 1970s-era property, a former nursing home, for $79 million in 2007 and renovated it last year. The company refinanced the property in 2014 with a $160 million loan from Natixis Real Estate Capital in a deal that was also brokered by Meridian.
It’s the latest property Chetrit’s sold in the past year. Last spring, Chetrit and Somerset Partners sold their huge Bronx development site to Brookfield Property Partners for $165 million, and over the summer Chetrit sold its stake in Downtown Brooklyn’s 9 Dekalb development project to partner JDS Development Group for around $60 million.
Chetrit was recently on the buy side in October when the company bought a group of Upper East Side properties from SL Green Realty for $144 million.
Update: This story has been updated to reflect that RCG Longview was one of the buyers.