55-59, 61-63 Delancey Street Sold as Part of $50 Million Package Deal
Crain’s reports that two Lower East Side buildings were cobbled together with several other downtown properties as part of a $50 million “package deal.” Madison Capital sold 55-59 Delancey Street and 61-63 Delancey Street, along with buildings in Soho and the West Village for $49.9 million. The Delancey Street properties have been a focal point of this neighborhood’s gentrification wars for several years.
Last year, New York Times columnist Michael Powell wrote about Madison Capital’s “‘repositioning strategy,’ which consist(ed) of persuading rent-stabilized tenants to leave and ‘releasing’ their apartments at fizzy market rates.” The company bought the two buildings in 2008 for $20 million. According to Crain’s, there was only “spotty” interest when Madison Capital tried to re-sell the properties, so they “decided to sweeten the deal” with other buildings in their portfolio.
Still, James Nelson of Massey Knakal Realty told Crain’s he believed:
…the Delancey Street buildings were the biggest opportunity because of their block frontage. The properties, which are adjacent, have 176 feet of retail shops bordering what is one of the main thoroughfares in that neighborhood. “When you control a blockfront like that as an owner, there are a lot of interesting things you can do with the retail,” Mr. Nelson said. “So to me that was the big opportunity of the portfolio.”
The new owners are RWN Real Estate Partners, Dalan Management and Standard Property Company.