A mixed-use property in Midtown was recently acquired by two groups in New York City.
Slate Property Group and PCCP, LLC he $37.7 million acquisition of 123 East 54th Street, located between Park and Lexington Avenues. The 15-story building includes 64 free-market residential units as well as more than 9,000 square feet of retail space. The acquisition was financed by Customers Bank.
“We’re incredibly excited to add another property to our already extensive portfolio in Midtown Manhattan,” said Martin Nussbaum, Co-Founder and Principal of Slate Property Group. “We’re excited to partner with PCCP to acquire this property and contribute to our long-term business plan to add high-quality, market-rate assets in core locations to our multifamily portfolio.”
“This is the exact type of deal we here at Slate Property Group strive to make,” said David Schwartz, Co-Founder and Principal of Slate Property Group. “As mid-market investment sales in New York City continue to pick up, we continue to seek assets that, once thoughtfully renovated, will enhance residents’ way of life.”
Originally built in 1977, the property currently houses the renowned Kosher restaurant Mike’s Bistro in one of the retail spaces. The building recently underwent major renovations to the kitchens, bathrooms, lobby, elevator cab and mechanical systems.
With the acquisition, Slate Property Group plans to continue the improvements with implementations of cosmetic upgrades to the interiors, common area renovations and updates to the boiler system. Slate also plans to market the unoccupied 4,000-square-foot retail space, which was vacated during the pandemic.
“We are pleased to add 123 East 54th Street to PCCP’s growing multifamily portfolio across the NY Metro. This acquisition presented an opportunity to partner with Slate to buy a 100% free market apartment property at what we believe is a significant discount to replacement cost. The property is in a retail rich walkable environment just off Park Avenue. This pocket of Midtown East is receiving significant public and private investment to modernize the office stock, increase food and beverage offerings and improve mass transit connectivity, all of which we believe bode well for long-term demand for rental housing which is so challenging to deliver in Manhattan,” added Brian Haber, SVP with PCCP.
Guthrie Garvin from JLL represented both sides of the transaction.