Eastern Consolidated has been retained by seller Tavros Capital as the exclusive agent to market for sale the majority interest in HIGH LINE 537 — formally known as 537 West 27th Street — in West Chelsea for $50 million.
The five-story, 47,000-square-foot residential building— located on West 27th Street just off of The High Line between 10th and 11th Avenues — is comprised of 28 units with nine-foot ceilings, a furnished rooftop terrace, and two retail spaces. The ground floor, retail spaces have 15-foot ceilings and are currently occupied, while the 12,000-square-foot lower level retail space has 20-foot ceilings and is also occupied.
Ownership’s managing partner seeks to recapitalize the asset by offering a substantial equity stake in this newly-constructed, amenity-rich building. In addition to maintaining managing control of the property, the operating partner seeks to retain its own equity stake of approximately ten percent in the ownership.
“This is an exceptional opportunity to acquire substantial interest in a multifamily residential asset that maintains a fully-stabilized operation and cash flow,” said Brian Ezratty, Vice Chairman at Eastern Consolidated, who along with Associate Director Ross Weiner and Director of Financial Services Scott Ellard exclusively represents the seller. “With today’s continually improving market rents, the property offers upside potential as leases roll over and can be further monetized through future conversion to condominium ownership.”
Ezratty added that as one of the most sought after locations for both established and insurgent artists, this area of Chelsea has seen tremendous increases in the value of retail and gallery space.
To maximize the asset’s full potential, HIGH LINE 537’s current ownership plans to renovate the main lobby with higher level finishes, relocate the main residential entrance closer to the center of the building, and reconfigure the lobby to create an additional kiosk-type retail space to be leased upon completion.
In addition to a laundry room, washer and dryer units are being added to several of the unit lines. The fitness center is also being relocated from the second floor to the lobby level, which will free up enough space to create a new one-bedroom apartment with a 590-square-foot terrace on the second floor.
On the third floor, two units are being combined into a three-bedroom residence that will total approximately 1,300 square feet upon completion. Some of the larger residential units are strategically configured to take advantage of the increasing market for shared living space that is now in high demand.
Located in the heart of lower Manhattan’s art gallery scene, HIGH LINE 537 is in close proximity to Google and The Chelsea Market. The property is easily accessible via the No. 1, 2, 3, A, C, and E subway lines from Penn Station.