Related Companies has paid Spitzer Enterprises $77 million for nearly all its ownership interest in three Hudson Yards properties near to where a joint venture among the companies plans to develop housing.
The deal gives Related 99.9 percent ownership in 17,300 square feet across three parcels, at 506 and 512 West 36th Street and 511 West 35th Street, which Spitzer bought in 2013 for $88 million.
The transaction values the properties at 12 percent less than what Spitzer paid, and leaves the firm with just a 0.1 percent ownership interest. “It’s one of the great growth opportunities in Manhattan,” Eliot Spitzer, who signed the sales deed over to Related, told The Real Deal when his family firm bought the parcels.
The firm’s $88 million bet on Manhattan’s West Side was made a year before its patriarch, Eliot’s father Bernard Spitzer, died.
Related’s purchase was financed with a $45 million loan from Mack Real Estate Credit Strategies which consolidated prior mortgages; the consolidation also mortgages 517 West 35th Street, which Related bought in 2018 for $96 million.
A representative for Related declined to comment. Spitzer did not immediately return a request for comment. The deal closed Oct. 18, records show. No construction plans have been recorded recently at the properties.
A joint venture among the two companies, Atria Senior Living and Welltower is developing a residential project on the same block, at 410 10th Avenue. The development, which is under construction, will have 526 units, with about a quarter of those reserved for seniors.