517-523 West 29th Street (Rick Kopstein)
Six Sigma NYC, a boutique design and development firm, has plans to create a new luxury condo building in Chelsea. The site, currently a Tuck-It-Away Self-Storage facility at 517-523 W. 29th St., was acquired for $54.75 million from Nick Sprayregen, the president of Tuck-It-Away, which has more than a dozen sites in New York City and the metro area.
Six Sigma president Jason Lee and partner Johnny Wan played an integral role in negotiations with Stephen Ferrara of Town Residential, who assisted the seller on the deal.
“There are a lot of ultra-luxury condos in the area that have a price range of $5 million to $10 million,” Wan said. “We want to provide a more affordable luxury option and offer a product in a better price range so more people can enjoy the area.”
Guy Arad, a partner at Romer Debbas and manager of the firm’s commercial real estate group, represented Six Sigma in the acquisition of the property. E. Michael Rosenstock of the Law Offices of E. Michael Rosenstock in Rockville Centre, New York, represented the buyer on corporate and other related matters.
Steven Uffner, a partner at Goldberg Weprin Finkel Goldstein, represented the seller.
The property, a six-story, 55,000-square foot active warehouse, is located between 10th and 11th avenues near the High Line’s northern end and Hudson Yards. The site is zoned for up to 74,000 building square feet. Several other condo and apartment towers are under construction nearby.
As part of the deal, it was agreed that the storage facility would remain operational and continue to stay in the possession of the seller for four months after closing to provide adequate time for storage units to be vacated.
“We expect the building to be completed in about 2 1/2 years,” Wan said. “We are still in the planning stage but we expect the number of residential units to be around 50 to 60.”
The demolition of the existing building is anticipated to begin in the spring, making way for the new construction project, Arad said.
In a separate and pending transaction, negotiations are underway for Six Sigma to potentially acquire an additional 4,900 square feet of air rights.
Six Sigma has grown over the years, beginning with the launch of a construction company about 14 years ago and then the addition of a development component around 2012. Lee’s expertise includes architecture, design and construction spanning more than 13 years. He has more than a decade of investment and development experience and has completed more than 200 projects valued in excess of $130 million.
The firm is known for developing, designing and building ultra-luxury condos in some of the New York City’s most sought-after neighborhoods and is also involved in development projects at 449 Washington St., 56 Walker St. and 435 W. 19th St.