Slate Property Group and PCCP Buy Mixed-Use Building in Midtown for $38M
Slate Property Group and PCCP have acquired a mixed-use property in Midtown East Manhattan for $37.7 million from Kalimian Family, Commercial Observer can first report.
The acquisition was financed by Customers Bank. Meridian handled the debt placement for the deal and Guthrie Garvin from JLL (JLL) represented both sides of the transaction for the sale.
The 15-story building at 123 East 54th Street dates from 1977 and includes 64 market-rate apartments as well as 9,000 square feet of retail, according to a release.
“We’re incredibly excited to add another property to our already extensive portfolio in Midtown Manhattan,” Martin Nussbaum, co-founder and principal of Slate Property Group, said in prepared remarks. “We’re excited to partner with PCCP to acquire this property and contribute to our long-term business plan to add high-quality, market-rate assets in core locations to our multifamily portfolio.”
Slate Property Group also plans to upgrade the apartments’ interiors, renovate the shared areas, and fix the boiler system. The pandemic emptied some 4,000 square feet of retail space at 123 East 54th, too, and Slate plan to put that on the market, per the release
“We are pleased to add 123 East 54th Street to PCCP’s growing multifamily portfolio across the NY metro area,” said Brian Haber, senior vice president with PCCP, in prepared remarks. “This acquisition presented an opportunity to partner with Slate to buy a 100 percent free-market apartment property at what we believe is a significant discount to replacement cost.”
“This is the exact type of deal we here at Slate Property Group strive to make,” said David Schwartz, co-founder and principal of Slate Property Group, in a prepared remark. “As mid-market investment sales in New York City continue to pick up, we continue to seek assets that, once thoughtfully renovated, will enhance residents’ way of life.”
Update: This story originally misattributed source material. This has been corrected. We apologize for the error.
Emily Fu can be reached at efu@commercialobserver.com.
