Photo via HFZ Capital Group
HFZ Capital Group has closed on its acquisition of Upper West Side prewar rental The Belnord, previously owned by Extell Development Company.
Located at 225 West 86th Street, the Renaissance Revival-style landmarked building occupies an entire city block from West 86th to 87th streets between Broadway and Amsterdam Avenue. The 14-story structure, built in 1908 and designed by H. Hobart Weekes, boasts a 22,000-square-foot interior courtyard behind wrought iron gates. Many of the 218 residences still have original detailing, including hardwood floors, fireplaces and decorative moldings.
The building went into contract around December 2014, according to The Real Deal, which first reported on the trade. Gary Barnett’s Extell purchased the Belnord in 1994 for a relatively low $15 million. HFZ’s Ziel Feldman was one of Barnett’s investors in the 1994 deal.
The purchase price has yet to be announced. A TRD analysis, based on data from Genesis Computer Consultants for the year 2012, estimated a sale price between $240 million and $300 million, based on the building’s $12 million net income in 2012 and a cap rate of 4 percent to 5 percent.
HFZ has also acquired a full-block West Chelsea site at 518 West 18th Street, between Tenth and Eleventh avenues, for a reported price of $800 million-plus. The developer is planning a mighty 800,000-square-foot tower inspired by Cesar Pelli-designed One Beacon Court in Midtown East, the New York Daily News reported. The proposed High Line tower could reach as high as 400 feet tall, with retail on the ground floors, a hotel in the middle and condos on the uppermost floors.
In December 2012, HFZ plunked down $150 million for Upper West Side pre-war rental The Chatsworth. The 1904 Beaux Arts building at 340 West 72nd Street was reworked into about 81 one- to five-bedroom co-op units, as we reported in January. Available units are priced from $2.235 million, and occupancy is anticipated for this summer.