NEW YORK CITY—Slate Property Group and equity partner Avenue Realty Capital have acquired a mixed-use apartment building at 401 E. 50th St. for nearly $14 million, GlobeSt.com has learned EXCLUSIVELY. Located in the Sutton Place neighborhood of Midtown, Slate plans to reposition the building into a high-end rental property after purchasing the fee-simple interest in the 15,984-square-foot property, with 2,125 square feet of retail space.
The deal was brokered by Clint Olsen and Jonathan Hageman from Cushman & Wakefield. This is the 10th purchase made by Slate—a relatively new firm formed in December 2013—over the last year as it adds to its growing portfolio of New York buildings.
The six-story property has been almost 90% vacant for many years, presenting Slate with the opportunity to quickly renovate the building. Over the next year, Slate will convert all vacant units into modern luxury residences with high-end finishes and reconfigured layouts to maximize efficiency.
Sutton Place is an exclusive residential pocket of Manhattan. The building is steps away from the East River and has direct access to the city's central business corridor, Midtown, as well as the Queensborough Bridge, Grand Central Terminal and numerous subway lines.
“It is rare to find a predominately vacant building in a premier Manhattan neighborhood,” says Martin Nussbaum, principal and co-founder of Slate. “This along with the architectural design of the property presents an incredible re-development opportunity. By repositioning the existing building and bringing in high-end retail tenants, we will maximize the building's value and add to the neighborhood's growth.”
Udi Kore, principal and co-founder of Avenue Realty Capital, adds, “We are very pleased with our joint venture with Slate as our operating partner and specifically with this deal, as it fits perfectly in our value-add multifamily investment strategy in New York and the surrounding areas. It is a valuable addition to our growing portfolio.” Avenue Realty Capital has been an active equity investor in the multifamily / mixed-use segment of the market in New York City over the last 12 months. This is the 18th property funded by ARC over the last year and the firm continues to be an active investor in the market.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
