A coveted pre-war rental building on the Upper East Side has been sold for $105 million.
Simon Baron Development bought the 65-unit Rosario Candela-designed building at 12 East 88th Street, which it plans to convert to luxury condos.
“I think the neighborhood is just one of those pre-eminent classic neighborhoods that people and families want to live in,” said Matthew Baron, president of Simon Baron Development. “Being right off Central Park is very attractive.”
The 13-story building was previously owned by Nostra Realty, a company under the umbrella of the Kwiat and Ferman families, since 1968. “They are very hard to find,” said Baron of the building. “It was designed really well. It’s an A-plus asset and an A-plus location.”
Jones Lang LaSalle brokers Jon Caplan, Richard Baxter, Scott Latham and Yoron Cohen brought the building to market last year for the families. It has 85,839 s/f of residential space and 1,800 s/f of office/retail which is currently being used as medical offices.
Goldman Sachs was the lender in the deal while HKS Capital Partners was the financing partner.
Simon Baron Development, which recently changed its name from Simon Development after Baron was promoted from principal to president, specializes in new and re-developed properties across the city.
It has a current portfolio of 13 buildings valued at more than $1 billion, comprised of more than 1,000 residential, hotel, retail and industrial units.
Recent projects include rental buildings Tower 31 at 9 West 31st Street, and 393 West End Avenue at 79th Street, which are currently under construction. The firm is also developing a 250-room hotel in Midtown at 11-13 East 31st Street.
Recent acquisitions the company has announced include two sites in Long Island City to be made into luxury rentals; a 400,000 s/f site and a 220,000 s/f site, as well as 166 West 75th Street, a 200-unit building on the Upper West Side being converted to rentals, and 393 West End Avenue, a 113-unit pre-war building being converted to rentals.