NEW YORK CITY—Madison Realty Capital reports it has acquired 421 West 21st St., a six-story multifamily elevator building in West Chelsea, for $21.75 million.

The real estate investment firm acquired the 30,421 square-foot property in an off-market transaction. The building, originally constructed in 1950, contains 36 units and has been family-owned by the seller since 1995, Madison Realty Capital officials say. The property features 11 large studios and 25 one-bedroom units, with eight units in the building currently vacant and an additional five leases for units set to expire within one year.

MRC says it intends to pursue a comprehensive value oriented capital expenditure program in order to reposition and modernize the property, which includes renovating vacant units into high-end luxury units, enhancing the lobby, hallways and elevator, and improving the overall operating efficiency of the property.

“At a basis which is well below replacement cost, the transaction offers intrinsic long-term value with the opportunity to generate immediate results through proactive management. Given its desirable Manhattan residential location and excellent upside, this property is an ideal fit for MRC's investment platform,” says Josh Zegen, co-founder and managing principal of Madison Realty Capital “This transaction aligns perfectly with our strategy of acquiring stable cash-flowing assets, but will still benefit from our track record of successfully repositioning and improving overall asset quality. We are pleased to add 421 West 21st Street to our portfolio, and look forward to executing our business plan for the property.”