Mitsui Fudosan eyes $275M for Hells Kitchen rental 

Japanese developer teamed up with Taconic Partners on 392-unit property

Mitsui's John B. Kessler and 525 West 52nd Street (Linkedin, Getty, Google Maps)
Mitsui's John B. Kessler and 525 West 52nd Street (Linkedin, Getty, Google Maps)

Another big New York apartment building is testing the recapitalization waters.

Mitsui Fudosan America is looking to sell its majority stake in the Hell’s Kitchen apartment building it developed with Taconic Partners at 525 West 52nd Street, The Real Deal has learned. The partners are seeking a deal that would value the building at $275 million.

The property is hitting the market shortly after the Durst Organization sold a large stake in its Sven apartment tower in Long Island City at a valuation of more than $700 million. 

Class A apartment buildings have been one of the few bright spots in the investment sales market as deals for other assets like offices and rent-regulated multifamily properties have seized up.

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A spokesperson for Mitsui declined to comment.

The partners developed the 392-unit building between 10th and 11th avenues in 2017 and refinanced it two years later with a $200 million loan from Wells Fargo. That loan carries an interest rate of 4 percent and matures in 2028, and the below-market financing terms are part of the property’s sales pitch.

It also has a 421-a tax abatement expiring 2039. There’s potential upside for a new investor to raise the rents on the regulated units when the abatement expires, according to marketing materials from Newmark, where a team led by Adam Spies and Adam Doneger is handling the sales process.

Mitsui is looking to sell its 75 percent stake in the property. Taconic will hang onto its 25 percent.

Read more

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Taconic, Mitsui Fudosan land $200M loan for Hell’s Kitchen apartment building
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Mitsui Fudosan buys majority stake in Taconic’s Hell’s Kitchen project
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