Hal Fetner Drops $63M on Manhattan Apartment Tower

Hal Fetner’s eponymous real estate firm, Fetner Properties, bought The Rose Modern, an 82-unit luxury apartment building in Manhattan, for $63 million. 

Fetner bought the building from Fred Ohebshalom of Empire Management and secured a five-year, fixed-rate $36 million acquisition loan from New York Life Investments for the purchase, a source with knowledge of the deal said.

CBRE (CBRE)’s Tom Rugg and Adam Spengler arranged the financing while Doug Middleton and Daniel Kaplan, also of CBRE, handled the sale.

CBRE and Fetner declined to comment. Empire and New York Life did not immediately respond to requests for comment.  

Located at 501 East 74th Street on New York’s Upper East Side, The Rose Modern features 82 units across 20 stories and overlooks the East River. The building includes 35 studios, 16 one-bedroom and 29 two-bedroom apartments. There are also three, three bedrooms and four sizable penthouse units. 

Built in 2016, The Rose Modern benefits from attractive financing from the 421a tax abatement attached to the property that doesn’t expire until 2028. The building’s legal rents were established by rents achieved during the initial lease-up and are subject to rent guidelines board increases until the abatement expires, the source said. 

All of the building’s units remain rent-stabilized until the expiration are exempt from “Good Cause Eviction” legislation, giving the building mark-to-market potential for any owner once the affordable housing requirement expires in four years, according to the source. 

Brian Pascus can be reached at bpascus@commercialobserver.com