Invesco Real Estate has struck a deal to sell its luxury apartments atop the Mercedes House in Hell’s Kitchen’s for more than $100 million.
Josh Rahmani and Ebi Khalili’s Empire Capital Holdings — fresh off their $320 million purchase of 1330 Sixth Avenue — are in contract to buy the 162-unit multifamily asset, the Commercial Observer reported. Cushman & Wakefield’s Gideon Gil is representing Empire Capital as it seeks acquisition financing for the deal.
Branded “The Collection at Mercedes House,” the property comprises the top 11 floors of the zig-zagging residential tower at 550 West 54th Street. Invesco paid $170 million for the property in 2014, buying it from developer Two Trees Management, which developed the full, 974-unit complex. Two Trees had intended to sell the luxury condominiums on the tower’s upper floors to individual buyers, but ultimately opted for a bulk deal.
Amenities in the 144,000-square-foot Collection portion of the complex include an indoor basketball court, indoor and outdoor pools, clubhouse lounges and nearby walking and cycling trails. Residents can also access the Mercedes Club, which includes a gym, pool, outdoor movie theater, putting green and bocce court. The complex takes its name from the Mercedes dealership at its base.
As of September, units were 98 percent occupied, with tenants paying an average of $92 per square foot on leases signed after July. Empire Capital’s purchase is expected to close in July.
The deal comes less than a month after investors including Empire Capital closed on their $320 million acquisition of the 40-story office tower at 1330 Sixth Avenue from RXR Realty and Blackstone. In addition to Rhamani and Khalili’s firm, the buyer group includes Hakimian Capital, CH Capital Group, Creed Equities and Nassimi Realty, sources told The Real Deal. Deutsche Bank kicked in a $215 million acquisition loan.
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Can Josh Rahmani and Ebi Khalili be Midtown’s next machers?
— Holden Walter-Warner