Delshah Capital plans to redevelop the office building at 221 West 17th Street into luxury condos after acquiring the property from Doreen Interiors for $26.4 million.
Delshah will partner with On the Level Enterprises to redevelop the 33,000-square-foot building. The partnership plans to add four floors to the building, creating a 10-story luxury residential condominium with ground-floor retail space.
The development plan will not add any square footage to the building, according to Jeff Bogino, a managing director at Delshah. Instead, the developers will remove some of the rear portion of the building and use that square footage to build new floors on top of the property.
“Effectively, we are going to convert square footage from the back in to new floors on the top of the building,” he said.
Previously, Delshah and On the Level partnered in the 2012 co-development of Renwick Modern, a luxury condominium development in Hudson Square.
Hall Oster and Brock Emmetsberger of Massey Knakal Realty Services represented Doreen Interiors in the transaction.
Update: This story has been updated to include more detail about the buyer’s redevelopment plans.