MAG Partners Selected to Develop Residential Co-op in Chelsea
Penn South, an affordable housing cooperative based in Manhattan’s Chelsea neighborhood, selected MAG Partners for the 200-unit development that will be built under New York state’s affordable housing program, with 30 percent of its units reserved for low- and middle-income residents.
MAG Partners will develop and operate the seven-story building under a long-term ground lease with Penn South. A grocery store and other retail stores are planned on the ground floor, with construction slated to commence in 2022.
The Real Deal first reported the selection of MAG Partners.
“It is an honor to partner with Penn South and join their long legacy of community-building in Chelsea,” Gilmartin said in a statement. “We are committed to building in a way that enhances this beautiful neighborhood and provides value to the co-op’s long-term sustainability.”
Paul Travis of Washington Square Partners provided real estate advisory services to the co-op. Susi Yu, principal and head of development, led the deal for the MAG Partners team.
MAG Partners chose Rick Cook and COOKFOX Architects to design the building with plans to bridge the historical character of Chelsea. The developer is also currently working with COOKFOX on the nearby 241 West 28th Street, a 480-unit apartment building slated to finish construction in late 2022.
Ambur Nicosia, president of the Penn South co-op board, said in a statement that the deal will replace a commercial building that required huge repairs and provide revenue “to preserve the affordability of Penn South. We needed a solution that does not require our shareholders to pay major increases in monthly maintenance fees. The stores are supposed to subsidize the apartments, not the other way around.”