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 represented both sides of the transaction for the sale.
Located at 123 East 54th Street, the 15-story building includes 64 free-market residential units in addition to over 9,000 square feet of retail space.
“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.”
Built in 1977, the property recently underwent major renovations. Slate Property Group plans cosmetic upgrades to unit interiors, light renovation of common areas and updates to the boiler system. The firm also plans to market the unoccupied 4,000 square feet of retail space, which was vacated during the pandemic.
“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.”
Emily Fu can be reached at email@example.com.