Done in 45 days — the Naftali Group snatched up a six-story rental apartment building in Chelsea in a speedy $37 million off-market deal.
The 75,000-square-foot building at 245-259 West 25th Street previously belonged to the Haruvi family and traded for slightly below $500 a square foot, cheaper than the average rate in Chelsea.
“We think $500 a foot is a very attractive price per pound,” Victor Sigoura, a Naftali Group executive, told Crain’s. “Condos trade in the area for $2,000 a foot.”
The firm got the bargain because it offered to close the deal before the end of 2012, sparing the Haruvi family from 2013’s higher tax rates.
“They were incentivized by the tax changes and that helped get us the price we got,” Sigoura told Crain’s. “We moved very quickly, we entered into a contract and closed from start to finish in 45 days.”
The Naftali Group will spend more than $1 million to renovate the property, which has 68 units. Twenty-two of the apartments are rent-stabilized. Rental rates have yet to be announced.