David Amirian of The Amirian Group acquired a vacant, four-story building at 117-119 West 21st Street for $28.5 million in a deal brokered by Eastern Consolidated, Commercial Observer has learned.
The new owner plans to redevelop the brick-walled commercial building, located between Avenue of the Americas and Seventh Avenue, into luxury condominiums, according to several people involved. The site, which sits on the border of Chelsea and the Flatiron District, is comprised of 4,353 square feet of land and offers 44 feet of frontage.
“The gut renovation of this property into high-end condos will tap into the area’s strong residential market, where prices have escalated from $1,500 to $2,500 and $3,000 per square foot,” said Eastern Consolidated Vice Chairman and Principal Brian Ezratty, who represented the seller and introduced the buyer. “Sales have skyrocketed in this neighborhood and The Amirian Group is perfectly situated to deliver an attractive, boutique offering along this great block.”
The deal closed yesterday. The seller is listed in city records as New York-based Alfa Development, which purchased the building in May 2013.
The property contains 38,612 buildable square feet, allowing it to be redeveloped into a single 12-story residential building featuring one townhouse unit, six full-floor units, and two duplex penthouses, according to Mr. Amirian. Amenities at the new building will include a doorman, storage space and five on-site parking spots, he said. The total project is estimated to cost $54 million.
Little Rock, Ark.-based Bank of the Ozarks provided a $30.5 million senior mortgage, brokered by Richard Horowitz of Cooper-Horowitz, to help fund the acquisition and redevelopment. Mr. Horowitz also secured $6 million in mezzanine debt from a newly launched fund called Tall Pines Capital, while Manish Majithia arranged the equity.
The New York-based design firm Grade Architecture is drafting plans for the redeveloped property.
“We did not want to build the same product that has been seen over and over again,” Mr. Amirian said. “We felt that a unique design and unique layout, providing full-floor apartments, with the opportunity to have parking would be special.”