In The News

New York Law Journal - Marketplace

By Justin Smulison
Published on August 22, 2007

The vacant office building at 241 Fifth Avenue is sandwiched in a narrow 52-foot-wide space between a cafe and the Museum of Sex, but there is virtually no vertical limit to expansion.

That made the property attractive for 241 Fifth Ave. Hotel, LLC, a privately held real estate joint venture that recently purchased the four-story office building for $26.5 million. The purchaser also acquired an additional 13,000 square feet of air development rights from an adjacent property.

The acquisition paves the way to convert the structure into a high-end hotel and condominium tower that could potentially total more than 76 rooms or 19 floors (70,000 square feet). Construction is expected to begin before the end of the year.

"There was significant competition and interest in the building," said Terrence A. Oved, a partner at Oved & Oved who represented the buyer.

Built in 1968, the pink granite-and-reflective building is located between East 27th and 28th streets in the heart of the Madison Square Park District and the Madison Avenue North Historic District. The seller purchased the property in July 2005 for $10.5 million.  There are already four hotels on the square block where the buyer plans to build. The Museum of Sex is at the southwest corner of East 27th Street.

Mr. Oved said the buyer was well aware of the nearby competition and is looking to develop a more modern-style locale, conceptually similar to the Mercer Hotel. "We're presently exploring strategic relationships with non-traditional boutique hotel operators to keep things a bit more sexy. It could possibly have a lounge and a four-star branded restaurant," Mr. Oved said. "Nothing is set in stone, though."


Along with Mr. Oved, partner Darren Oved and associate Daniel M. Seidenstein of Oved & Oved, and Bruce J. Leuzzi, partner at Leuzzi & Leuzzi, represented the buyer. Bryan W. Kishner and Peter Weiner, respectively a partner and of counsel at Bryan W. Kishner & Associates, represented the seller, 241 Fifth Ave, LLC.

Nathaniel Christian, a partner at the Nathaniel Christian Group, served as broker for the buyer.
Stan Putko, a senior vice president at Metro Spire, and associate Ilan Delareya served as brokers for the seller.

 

 

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