Eastern Consolidated has arranged a transaction that will transform 147 and 151 East 86th Street into a large mixed-use residential tower with high-end units.
Stillman Development International and retail investor and developer Ceruzzi Properties LLC, have entered into a joint venture agreement to purchase 151 East 86th from Town Sports International Holdings — which owns and operates the New York Sports Clubs fitness chain — for $82 million.
Stillman also signed a long-term ground lease with Sol Goldman Investments for an adjacent corner property at 147 East 86thStreet to complete the development footprint.
“This was a multi-layered transaction that achieved benchmark pricing for the sellers, which is a testament to the strength of the current market for development sites in A-locations,” said Matt Crosby, Eastern Consolidated, who represented both the buyer and seller. “The highly visible location affords the developers a rare opportunity to redefine an entire neighborhood.”
The project continues the transformation of the East 86th Street corridor started before the downturn with Extell Development’s Lucida and Related’s Brompton that were part of a broader upturn in the retail and residential landscape on East 86th Street.
The developers are planning to construct a 210,000 s/f skyscraper with approximately 21 stories that will house retail, including a New York Sports Club, on the first four floors of the building with residential condominiums above. The project is slated to be completed in four years.