An Upper West Side apartment building, 393 West End Ave. at West 79th Street, has been purchased by a joint venture of Simon Development Group and Cube Capital for $68.3 million. The 16-story, 134,000-square-foot prewar property with 113 residential units was sold by 393 West End Avenue Holdings LLC.
Public records show the LLC as care of A&E Real Estate Management and that A&E purchased the property in April for about $56 million. A spokeswoman for the group declined to comment of the recent sale.
“The apartment building has a lot of potential but has been neglected for many years,” said Matthew Baron, a principal of Simon Development. “We saw an opportunity to take something that is broken and fix it.”
Karen Scanna, a partner at Stroock & Stroock & Lavan, represented the seller.
Jonathan Hoffman and Philip Sharfstein, partners at Westerman Ball Ederer Miller & Sharfstein in Uniondale, represented the purchaser. Sharfstein is also co-chairman of the firm’s real estate practice.
The acquisition met the new owners’ criteria of a “superior Upper West Side corner location combined with a potential upward reposition,” Paul Leibowitz, an executive vice president of CBRE’s investment properties institutional group, said in a statement.
Most of the building is tenant occupied with predominantly one-bedroom units, ranging from 700 square feet to 900 square feet, said Baron.
The owners plan to keep it as a rental building and will “make improvements to the property to realize its full potential.” There is also an “upside to rents” when you look at comparable buildings with higher rents elsewhere, Baron said.
Simon Development Group was founded by Jonathan Simon in the early 1990s. The development group has a diverse portfolio of 13 buildings, including about 700 residential units and 160,000 square feet of commercial space.
Cube Capital is a global investment and hedge fund firm based in London with a real estate investment division focused on distressed or value-add opportunities in the United States.
In addition to Leibowitz, CBRE vice chairmen Darcy Stacom and William Shanahan along with Robert Garrish, first vice president, handled the deal on behalf of the seller. Stacom is also head of CBRE’s New York investment properties group.
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