Joe Moinian seeks buyer for Far West Side rental building

The developer is asking $200M for 164-unit Oskar

Jun.June 06, 2019 01:00 PM
Joe Moinian and 555 West 43rd Street

Joe Moinian and a rendering of 555 West 43rd Street

Joe Moinian is seeking a buyer for a mid-rise apartment building on the Far West Side with an asking price of $200 million.

The Moinian Group is looking to sell its 164-unit Oskar rental building at the corner of 11th Avenue and West 43rd Street, sources told The Real Deal.

The asking price for the 13-story building at 555 West 43rd Street works out to about $1,600 per square foot.

A spokesperson for the Moinian Group did not immediately respond to a request for comment. A Newmark Knight Frank team of Jimmy Kuhn, Dustin Stolly and Jordan Roeschlaub is running the sale with bids due later this week. The brokers declined to comment.

Moinian, one of the early pioneers to see the potential of the Far West Side, bought the property he would later develop into the Oskar for $5.9 million in 2004. He landed a $103 million construction loan in 2017 from the Bank of China and last year finished work on the building, which the developer named in honor of Oskar Brecher — the Moinian Group executive who died in 2016 just a few weeks short of his 70th birthday.

The building has a mix of 118 free-market units (88 percent of which are leased) and 46 affordable units — nearly half of which are one-bedrooms with the remainder split between studios and two-bedroom units.

Moinian developed the building under the 421a replacement Affordable New York, which gives the property a 100 percent exemption on most real estate taxes for a period of 35 years. The developer calculates the stabilized net operating income at $8.6 million, according to an offering memo obtained by TRD.

The marketing effort highlights the building’s proximity to Hudson Yards and pitches it as a rental play or an opportunity for a condominium conversion.

Elsewhere on the West Side, Moinian developed one of the city’s largest rental buildings with SL Green catty corner to the Oskar at 605 West 42nd Street, dubbed Sky.

Moinian is also co-developing a Hudson Yards tower with Boston Properties at 3 Hudson Boulevard. The developers are currently looking for an anchor tenant to kick the project off.

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