HAP sells stake in Chelsea apartments in deal valuing project at over $500M

Eran Polack’s HAP Investments sold its stake in the Maverick building in Chelsea in a deal that values the newly constructed residential property at more than $500 million.

HAP sold its 49 percent interest in the condominium and rental property on West 28th Street to its joint-venture partner, a subsidiary of Japanese homebuilder Daiwa House Group, the developer said.

The deal values the Maverick, which is expected to get its certificate of occupancy in January, at $506 million. That’s the kind of big-ticket price tag appearing more often in recent months as the wheeling-and-dealing that has long characterized New York’s property-investment market returns to something resembling normalcy.

Polack called the sale “an encouraging sign that New York City is on the road to recovery.”

The Maverick consists of two 20-story buildings at 215 and 225 West 28th Street: an 87-unit condominium building and an adjacent rental property with 112 apartments. HAP said the condominium portion of the building is more than 25 percent sold.

The sale marks Polack’s financial exit from a project he had been working on for the better part of a decade. HAP purchased the property at 215 West 28th Street, across the street from the Fashion Institute of Technology, in 2013 for a little more than $50 million.

At the time, the firm had primarily been focused on developing projects in Upper Manhattan. Polack picked up the property next door at 225 West 28th Street for $30 million in 2016, paving the way for a pair of buildings spanning 312,500 square feet.

Daiwa House Texas, the local subsidiary of Japan’s Daiwa House Group, provided roughly $238 million in construction financing for the project.

The development, designed by DXA Studio, includes amenities such as a 60-foot-long swimming pool and a rooftop deck with a pizza oven. Streeteasy shows the most expensive listing in the building is a nine-room apartment on the 14th floor asking $6 million.

HAP will stay on to finish construction on the project and manage it afterward.

Meanwhile, the company kicked off excavation work earlier this year on its latest project: a 41-unit condominium building at 65 Franklin Street in Tribeca.