NYC's Parc East Tower Sells in $158M Deal

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May 17, 2006
By Barbra Murray, Contributing Editor

Parc East Tower, the 324-unit residential rental building at 240 E. 27th St. in Manhattan, just traded for $158 million in an off-market transaction. With the assistance of RMB Properties president & CEO Rama Bassalali as the sole broker on the deal, Wards Construction sold the 293,000-square-foot New York City property to global investment group Brack Capital, 39 years after having developed it.

"Wards was motivated to sell by the price," Bassalali said. "They got a very good offer."

The sale price was in line with the staggering figures seen last year. As per Marcus & Millichap Real Estate Investment Brokerage Co.'s 2006 National Apartment Research Report, investors seeking properties for condo conversions played a significant role in the brisk price appreciation, with over 5,300 units selling at a median price of nearly $500,000 per-unit; Park East went for about $488,000 per-unit.

Located between 2nd and 3rd Avenue on Manhattan's East Side, the 26-story Parc East also features 7,000 square feet of retail space, as well as a parking garage that accommodates public parking for 200 vehicles.

The new owner has fairly significant changes in store for the property. "Brack plans to renovate and get the attorney general's approval to convert the building from rentals to condominiums," Bassalali noted.