NEW YORK CITY—In one of the largest multi-family transactions of the year so far, a partnership of Atlas Capital, Rockpoint Group and the Procaccianti Group has sold the Nash—at 222 E. 39th St.—for $126 million. Following a full-scale renovation and repositioning of the 25-story, 191-unit luxury property, Lloyd Goldman of BLDG Management purchased the building.
Eastern Consolidated’s Brian Ezratty, vice chairman and Scott Ellard, director, exclusively represented the seller, while Ezratty procured the buyer. A legal team from Greenberg Traurig LLP, led by Rob Ivanhoe, David Bolen and Minnie Bellomo, were the seller’s attorneys in the transaction. Steven Holm and Andrew Kellner, of Levy, Holm, Pellegrino & Drath, LLP were the buyer’s attorneys. ??
Atlas, Rockpoint Group and TPG first acquired debt on what was then the Eastgate Tower Hotel in July 2012. Realizing the property’s potential to be converted and in order to take advantage of the strong rental market and prime location, the partnership restructured the deal through a pre-packaged bankruptcy plan and repositioned the building.
The partners closed the hotel and completed an extensive renovation of the property, reconfiguring common spaces, turning the guest rooms into one-, two- and three-bedroom apartments and upgrading the ground floor retail space, outdoor plaza and a garage with 100 parking spaces. A roof deck, fitness center and bike room also were added.
The property emerged from bankruptcy in November 2012 with the renovation beginning early in 2013. The luxury rentals at the Nash began leasing in August 2013. The building is now approximately 70% leased.
Located in Midtown, the Nash sits within walking distance of the United Nations, Grand Central Terminal, NYU Langone Medical Center, the Empire State Building, and the Chrysler Building, among other New York City landmarks.
“Residential assets of this size, scope, and quality rarely become available for sale, especially in Midtown,” says Ezratty. “There was a heated bidding process, which enabled us to achieve a maximum price on behalf of the seller.”
Prior to the sale, Ezratty arranged a garage lease with Champion Parking—which operates more than 50 locations throughout Manhattan—that enhanced the asset’s overall value.