NEW YORK CITY—The Lightstone Group has agreed to sell thedevelopment site at 112-118 Fulton St., in Lower Manhattan for over$170 million, according to The Real Deal. The buyer, theSan Francisco-based investment and building firm Carmel Partners,reportedly is under contract. Representatives of Lightstoneand Carmel did not return calls from GlobeSt.com seekingcomment by press time. Watch this space for possible updates.

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The Lightstone Group, headed by David Lichtenstein, assembledthe site composed of three parcels as well as air rights on Fultonand Dutch streets, during a long and complex process. Lightstoneinitally planned to build a 452-unit tower with 48 stories, on112-120 Fulton, according to city Department of Buildings plansfiled last year. However, Lightstone changed course after it wasdenied a 421-a tax abatement. The company planned to create a460-unit building with 59 stories on 112-118 Fulton.

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The news comes in the wake of news that broker-turned-developer Michael Shvo is planning to buy 22Thames St. from Fisher Brothers, Witkoff Group and others for $180million. The two sales underscore the surge in land prices in LowerManhattan. Shvo will pay more than twice the $87 million the Fisherventure paid in 2012, notes the Real Deal.

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This would be the second development site in Manhattan forCarmel, headed by Ron Zeff, which owns and develops propertynationally. Carmel is part of a joint venture that is building aresidential tower at 325 Lexington Ave., between 38th and 39thstreets in Midtown.

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A team led by HFF broker Andrew Scandalios brought the FultonStreet property to market, according to sales material reviewed byTRD. That information said the site had up to 406,853square feet of development rights. But sources close to the dealsaid the sale involved only about 380,000 square feet ofdevelopment rights.

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In January, Carmel purchased the 151-unit rental tower 15 CliffSt., in Lower Manhattan, for $95 million, and in 2012 itgrabbed the 163-unit apartment building the Electra at 354 E. 91stSt., also for $95 million.

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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.