NEW YORK CITY—Dalan Management and RWNReal Estate Partners have purchased the 99-year groundlease for the Indigo—located at 230 E. 44th St.—for $47 million.The seller is a partnership of Atlantic RealtyGroup, Moezinia Bros. Capital and230 MD Member.

M&T Bank provided a $36.2 millionacquisition and renovation loan—brought in by HKS CapitalPartners—and Daniel Rahmani ofVenture Capital Properties brokered the deal. The14-story, 135,315 square-foot, mixed-use building features 164residential apartments, a 25,000 square foot parking garage and3,700 square feet of retail space that's fully occupied by arestaurant and a nail salon.

The building is on a ground lease and the joint venture buyersacquired the leasehold interest in the property. The leaseoriginally had 14 years remaining before a fair market rent resetwas to take effect. The buyer was able to sign a “softcontract” during which time it restructured the ground lease to abrand new 99-year-term with contractual rent, no fair market rentresets and other improved terms.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

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.