Douglaston picks up Upper East Side rental building for $115M

Jeffrey Levine’s Douglaston Development is moving forward with a big development project on the Upper East Side.

Douglaston bought the 90-unit rental property at 1450 Third Avenue for $114.5 million from longtime owner Marjorie Nesbitt, according to property records. The firm also scored a $270 loan package from BDT & MSD Partners, the merchant bank formed last year by Michael Dell’s MSD and Byron Trott’s BDT.

The loan package includes $201 million in construction debt and $69 million in acquisition loan, according to property records. Newmark arranged the debt.

The property, which is also known as 170 East 83rd Street, covers the full western blockfront between East 82nd and East 83rd streets.

Levine has plans to knock down part of the existing rental building and put up a 39-story, 478-foot-tall building with 72 units at 175 East 82nd Street, PincusCo reported in March. Combined, the structures will have 172 units.

The project will use 40,000 square feet of inclusionary air rights from 460 Main Street, developed by Related and Hudson Companies on Roosevelt Island, and 49 East 73rd Street. ABS Partners’ Randy Modell and Steve Hornstock advised the prior owner on the sale.

CetraRuddy Architecture is designing the project, which will have retail on the ground floor, parking on the second, and one or two apartments on each residential floor, according to PincusCo. Planned amenities in the middle of the tower will include a swimming pool, media room, sauna, terrace, fitness room, kids room and yoga studio.

Douglaston and BDT & MSD could not immediately be reached for comment.

Orion Jones contributed reporting. This story has been updated with the full name of the lender.