Eastern Consolidated Represents Seller and Procures Buyer of "Stonehenge 56" Which Fetched $37.96 Million
A Mixed-Use Residential Property in the Heart of Manhattan’s Midtown West
York, NY – January 10, 2011 – Representing Stonehenge Partners, Inc., led by Ofer J. Yardeni and Joel Seiden, Eastern Consolidated announced the $37.96 million sale of Stonehenge 56, a 90,000-square-foot, 95-unit mixed-use residential/retail building at 401 West 56th Street situated on the northwest corner of Ninth Avenue in Manhattan’s burgeoning Hell’s Kitchen neighborhood.
Eastern Consolidated Principal and Senior Director Alan P. Miller exclusively represented the seller, while Eastern’s Senior Director Peter Carillo, procured the buyer, 56 Scarlett Associates, an affiliate of Orin Management, a locally-based real estate operator/manager.
“Multi-family elevatored apartment buildings in Manhattan happen to be the most desirable investment properties to acquire, yet Ofer Yardeni decided to engage Eastern Consolidated to sell the property the old fashioned way,” shared Mr. Miller.
“Targeting only those investors that could handle a transaction of this size, and making telephone calls one by one to a list that was very short, constituted the beginning of my ‘under the radar’ sales effort,” added Mr. Miller. “An additional early obstacle was the fact that the property was on the market initially without an asking price. After starting confidential discussions about a potential transaction in January 2010, the building officially hit the market in May 2010. Finally, after six to seven months of trying to sell the property—with no public relations, advertising nor website postings--my colleague Peter Carillo introduced a locally-based owner/operator who went to contract in November, closing thirty days later on December 16th 2010.”
Additionally, Mr. Yardeni is a client of Mr. Miller’s, a personal friend, as well as his landlord; Mr. Miller and his family reside at the Ritz Plaza, owned by Stonehenge Partners, in Times Square.
According to Mr. Miller, 401 W. 56th Street was the third building purchased by Stonehenge in its 15-year history, back in 1995. Consequently, the company was loathe to easily let go of it, both for sentimental and financial reasons. Stonehenge had nurtured the building, which it had acquired in bankruptcy, at a time when the complete roster of its 95 tenants was on a rent strike and there was only one occupant in its 40-car underground parking facility.
Fast forward to 2011. The property now offers tremendous upside with 40 of its 95 units rented at below market rates. Of its 14,370 square feet of retail space, Bello Restaurant, a loyal tenant for the past 25 years, is on a long-term lease in the corner unit until 2019. Lincoln Park, a popular local sports bar, which has been in the property since 1998, recently expanded from 1,500 to 4,480 square feet, signing a new 10-year lease extension.
“My client was keen to acquire the property because of the upside as well as because of its stellar location in burgeoning Midtown West, one block south of West 57th Street, across from the Hudson Hotel, only three blocks from the Time Warner Center and a few blocks from Times Square. Now in possession of a re-positioned, renovated and well-located property, the new owners plan to continue improving the property,” stated Mr. Carillo.
Attorneys in the transaction were Matthew E. Kasindorf, Esq, and David G. Moss, Esq.,Meister Seelig & Fein LLP for the seller and Steven R. Uffner, Esq., Goldberg Weprin Finkel & Goldstein LLP for the buyer.
Founded in 1981, Eastern Consolidated is one of the country’s preeminent full-service real estate investment services firms, combining an unrivaled expertise in the greater New York marketplace with a worldwide roster of institutional and private investor clients. Over the years, it has been responsible for the acquisition, disposition and finance of all types of properties, including office and apartment buildings, lofts, factories, hotels, shopping centers, commercial and residential development sites, taxpayers, parking garages and lots, retail condominiums and air rights transfers.
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