Korman Plans $40M Renovation for New NYC Buy

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NEW YORK CITY-Korman Communities now owns two properties in the city with its recent acquisition of 42 W. 58th St. The Plymouth, PA-based firm is converting the 117,000-sf former apartment/hotel building into luxury furnished corporate apartments.Korman joined with BlackRock Realty Advisors on the acquisition; Ark Investment Partners was the seller of the property, which was previously operated as a Wyndham Hotel. Start to finish, the transaction took three months to complete, according to Scott Relick, president of KCI Investment Inc., the acquisition and disposition arm of Korman.Korman is now investing between $40 million and $50 million to renovate the property. The plans call for a complete renovations of all the units, systems and common areas with a grand opening slated for November, Relick adds. New York-based architectural firm HLW International LLP is designing the renovation project and Lehr Construction, also of New York, is doing the construction.The building currently has 138 units, and although Korman has not decided on the final number of units, Relick tells GlobeSt.com the number will be close to what is there now. When complete, the property will have a combination of furnished studio, one- and two-bedroom apartments. No rents have been set at this time, he adds.While Relick declined to disclose the acquisition price, he tells GlobeSt.com that there is no comparable properties available in the area. “For our business, which is luxury furnished apartments, this is a AAA location with access to theaters, offices and the amenities of Fifth Avenue.”Darcy Stacom, CB Richard Ellis executive vice president and partner , and William Shanahan, executive vice president and partner, brokered the deal. Wells Fargo Bank provided the financing.This the seventh metro area property for Korman, including five in Northern and Central New Jersey, according to Relick. Its other city property is 234 E. 46th St., at the corner of Third Avenue. Korman also owns a 12-story high rise at 25 Martine Ave. in White Plains.