HFZ Capital Group announced that it is moving ahead with plans to develop and convert into luxury residential condominiums the recently acquired 10-story, 122,000 s/f office building at 11 Beach Street.
City records show the company paid $62 million for the Tribeca property that sits on an “L” shaped plot with 81 feet of frontage on Beach Street, 52 feet of frontage on Varick Street and 101 feet of frontage on St. John’s Lane .HFZ has begun pre-development planning for the conversion.
The development will utilize the existing structure, re-coring the building for residential use.Partners in the project include Joy Construction and New Valley. HFZ and Joy will provide oversight for the project through a combination of its construction, operations and executive management team. Susan de Franca, president and chief executive of Douglas Elliman Development Marketing, and her team will advise on issues regarding the sales and marketing process.
“11 Beach Street is another strategic acquisition for HFZ,” said Ziel Feldman, founder and managing principal of HFZ Capital Group.“There is a strong demand in the market for larger, loft style apartments within TriBeCa. Today, we’re forging ahead with plans to convert it into a luxury, residential condominium that fits the
character and style of the neighborhood. This type of addition to our portfolio — a historic property in a sought after neighborhood — has become a signature of HFZ.”
Howard M. Lorber, president and CEO of New Valley, — which owns a controling interest in Douglas Elliman Realty and invests in real estate opportunities — stated, “We chose to partner with HFZ on this project because of the prime location of the building and the strong demand for homes in TriBeCa.
“A well-documented scarcity of inventory, in addition to the neighborhood commanding some of the highest prices per square foot in the city, make this an attractive investment opportunity for us as the market continues to gain momentum.”