Keystone plans boutique condo in Tribeca

391 Broadway
391 Broadway

Erez Itzhaki’s Keystone Group is in contract on an office building at 391 Broadway in Tribeca. The firm plans to add a rooftop addition to the five-story property and convert it into a luxury, boutique condominium, a company spokesperson, Daniel Martin, said.

Itzhaki, who recently handed control of his eponymous brokerage firm Itzhaki Properties to a new partner to focus solely on his acquisitions and development firm, paid $8.5 million for the property, Martin said. The building is currently home to several design firms and to Infinity Shoes, which leases the ground floor. While the retail will remain on the ground floor, all of the building’s other leases are set to expire within the next 18 months.

Martin said the building, between Walker and White streets, will be converted to floor-through lofts with a private keyed elevator for each unit. The project, including the rooftop addition, is subject to approval from the Landmarks Preservation Commission.

Though Martin declined to comment on the units’ pricetags, he said comparable properties in Tribeca were trading for approximately $1,500 to $1,700 per square foot. “We feel those are bankable numbers,” he said.

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At the moment, it is thought that two of the units will be 2,500 square feet, while the other two will be larger than 3,000 square feet. There will be four or five units in total, depending on whether the rooftop extension is combined with the building’s upper floor.

Itzhaki Properties’ Amir Aframian represented the seller, Meykrie Realty, and the buyer in the deal.

Itzakhi founded Keystone in 2005 with business partner Gil Boosidan. The business is based at 580 Broadway. The firm is currently pursuing mixed-use, multi-family, and office buildings and is planning a quick succession of acquisitions in coming months, a spokesperson told The Real Deal. It also recently acquired a 27-unit elevator building at 225 East 82ndStreet.

Tribeca has been seeing its fair share of new construction and conversions lately. A number of new loft and warehouse residences have been heralded despite the area’s designation as a historic district, which can limit new development. Many of these conversions are smaller, boutique style properties: for example, a new Tribeca condominium project by VE Equities at 46 Lispenard Street has just 11 units.