Pink Stone sells languishing FiDi site for $89M

Grubb Properties is continuing its march into New York City, planning an additional residential development in the city at a controversial site.

The North Carolina-based developer purchased 111 Washington Street in Manhattan’s Financial District from Pink Stone Capital for close to $89.2 million, Crain’s reported.

The location — which sits just blocks away from the World Trade Center — will be known as 8 Carlislie. The company said it is proposed to be 50 stories with 400 residential units and 22,000 square feet of ground floor retail space. Pink Stone will serve as a partner on the project.

The site has been the subject of multiple legal battles, including a drawn-out battle between father and son. In 2017, Pink Stone founder Richard Ohebshalom filed a lawsuit against his father to prevent the sale of the development site.

Richard alleged Empire Management founder Fred was wielding the sale of 111 Washington Street as part of their ongoing feud. In the suit, Richard dismissed the site’s $148 million proposed sale price as “woefully deficient.” The case has since been dismissed.

In addition to the FiDi location, the developer recently acquired a Long Island City property for a project the company said would be 17 stories tall, yielding 317 units in 230,000 square feet of space. The development would also include 9,000 square feet of retail space. Of the planned units, 30 percent would be affordable, while 70 percent would be listed at market rate.

The intentions for the Long Island City site began to emerge last month when Grubb filed plans for a mixed-use building at 41-34 27th Street. The company went into contract on the property in March, as well as for an adjacent lot.

The company announced in June it had closed a $75 million funding round as part of its goal to raise $400 million for affordable multi-family real estate entities that qualify as “essential housing.”

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