Carmel family is the seller
Adam America Real Estate Group has acquired a development site at 2503-2509 Broadway from the Carmel family for $50 million. The corner site at West 93rd Street is primed for condos, and allows for the development of 75,500 square feet.
Worth Noting: Michael Dell’s MSD Partners provided $37 million in financing, according to Crain’s. The billionaire’s family office will have the option to gain an equity stake in the project in the coming years.
Sound like a pro… When the Carmel’s sold their other condo site at 2555 Broadway (AKA Gristede’s site) nearly two years ago, they didn’t fare as well. With the condo market having slowed considerably, buyers balked at their excessive asking price of $100 million (approximately $775 per foot).
The caveat: There were 150,000 square feet of air rights associated with nearby buildings that could be used to increase the future size of the development. However, the Carmel’s and the other owners could not agree to list them as a package.
The play: While the site lagged on the market, Gary Barnett acquired some of those available air rights and cornered the seller to make a deal. At that point, he was the only logical buyer, and ended up paying slightly under $500 per buildable SF (blended) for the assemblage. Well done.