DHA Capital, the recently-formed development and investment firm with a $250 million purse, has bought a Hell’s Kitchen development site for $50 million.
The company, founded by veteran New York developer Dan Hollander, partnered with USAA Real Estate Company and Crimson Real Estate Fund to purchase 546 West 44th Street from Pasha Group.
At $300 psf, the transaction is the highest pricing achieved for a residential development parcel in Midtown West since the recession.
Cushman & Wakefield New York Capital Markets team of Helen Hwang, Nat Rockett, Karen Wiedenmann, Steve Kohn, and John LiGreci represented the seller.
The team noted the property has a land area of 27,615 s/f and offers the investment group the opportunity to construct a building with up to 165,690 s/f as-of-right for residential use. A developer can also receive bonus zoning floor area through the Inclusionary Housing Program, which would allow a total buildable area of 220,920 s/f.
“546 West 44th Street is a great opportunity to own a prime residential development site in an area of Manhattan in the midst of a profound and rapid transformation,” said Hwang, an executive vice president at the brokerage.
Situated within the Special Clinton District, the neighborhood also goes by Midtown West and Hell’s Kitchen. 546 West 44th Street sits on the doorstep of several brand-new luxury apartment buildings, including Silver Towers, The Atelier, MiMA, Orion, 455 West 37th Street and 505 West 37th Street.
The area alos has a booming performing arts scene and is the headquarters for several Fortune 500 firms and global companies.
None of the JV buyers were available for comment by press time, although DHA Capital announced last month that it was “actively expandingˮ its pipeline of residential and mixed-use projects in Manhattan and Brooklyn.
DHA recently sold two of its initial developments and said forthcoming projects would represent roughly 400,000 buildable square feet. The company said it is prepared to spend $250 million on new acquisitions in the near term.
“I am encouraged by the success of DHA’s initial set of deals and excited to embark on a more aggressive round of acquisitions,” said Hollander, managing principal of DHA Capital LLC. “We will continue to create value for our investors by identifying unique opportunities in standout neighborhoods.”