Also included in the arrangement with Berkshire Capital Group LLC, an affiliate of London real-estate investor CIT Group Plc, and Lend Lease Real Estate Investments Inc. is a small adjacent site—-167 West 23rd St. The 18-story Chelsea also features a 50-car garage and six stores on Seventh Avenue.

"The sale says a lot about the strength of the New York residential market, especially the Chelsea area, and the creditworthiness of our tenant," points out Mitchel A. Maidman, Townhouse president. And Townhouse and Pine plan to continue along the same path finding a niche in the corporate housing environment.

Townhouse was repped by Maidman & Mittelman LLP and Fried Frank Harris Shriver & Jacobson. The purchasers were represented by Akin Grump Strauss Hauer & Feld LLP and King & Spalding LLP. Financing for the sale was provided by Credit Suisse First Boston, which was represented by Sidley Austin Brown & Wood LLP.