Manhattan Apartment High-Rise Hits Market

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Manhattan Apartment High-Rise Hits Market

Monday, April 10, 2006

By Jillian S. Ambroz, Commercial Real Estate Direct Senior Writer The Elektra, a 166-unit apartment high-rise in the heart of New York's Gramercy Park neighborhood, has hit the market. The 32-story high-rise is owned by Continuum Health Partners Inc., a non-profit health system in New York that is comprised of five hospitals, including Beth Israel Medical Center. The company has hired the New York office of Holliday Fenoglio Fowler LP to market the property for sale. The building at 290 Third Ave. between 22nd and 23rd streets would make a good condominium conversion candidate and is likely to fetch top dollar. Condo conversion candidates in the area are trading for about $1,200/sf, which would put a price tag for the 116,009-sf building at around $140 million. Recent comparable trades include the 105-unit building at 1218-20 Second Ave., which sold for about $960,714/unit. And Archstone-Smith is paying around $600,000/unit for the Marlborough House at 245 East 40th St. and Second Avenue. But it plans to keep that unit a rental. Nonetheless, those deals would imply that the Elektra could sell for between $100 million and $160 million. The Elektra was built using air rights from surrounding buildings and therefore is one of the only residential high-rises in its immediate neighborhood, a factor which also could boost pricing. The building was developed in 1992 by MJM Associates. It has two retail units totaling 7,614 sf, as well as a roof deck with views of Midtown, Lower Manhattan and the East River, and a fitness room.