Alcion, Slate Take Discount to Sell Union Square Rentals
As Alcion Ventures winds down operations, it’s resigned to taking the occasional hit on the properties it’s selling.
A joint venture between Alcion and Slate Property Group sold the 133-unit rental building at 60 East 12th Street near Union Square for $82.5 million, the Commercial Observer reported. The deal works out to $620,000 per unit.
The buyer was a different joint venture between Stonehenge Investment and Wraith Capital Group. They managed to take a nearly 25 percent discount on the $107.5 million Alcion and Slate spent to buy the property from Heller Realty in 2019.
None of the parties involved in the deal immediately responded to a request for comment from the publication. There were also no brokers involved in the deal.
The 13-story building contains apartments ranging from studios to three-bedroom units. There is also 5,100 square feet of retail space, which is occupied in full by a Metropolis parking garage.
Boston-based Alcion, which owned a 91 percent stake in the property, has been liquidating its assets as it winds down operations, opening the door to buyers eager to score a deal.
Last year, Friedkin Property Group paid $130 million for a 26-story, 304-unit apartment building in Chicago’s Gold Coast, acquiring it from Alcion and Golub & Co., which bought it for $146 million in 2016 and poured another $30 million into renovations.
Meanwhile, Slate and nonprofit partner Breaking Ground ended last year by acquiring the Stewart Hotel at 371 Seventh Avenue for $255 million for a hotel-to-residential conversion.
The property will be converted into 579 affordable housing units, including apartments for formerly homeless individuals, with the total redevelopment cost reaching approximately $500 million. The conversion is expected to take two years and is partially funded by $87 million in state financing from the Hotel and Commercial Conversions Program.
Elsewhere in Union Square, controversial landlord Aron Stark’s cousin (who has the same name) is pursuing a 12-story, 29-unit residential development at 100 East 16th Street.
Read more
Golub, Alcion take loss in $130M sale of Gold Coast apartments
Slate seals deal on Stewart Hotel acquisition for $255M
Aron Stark — not that one — has a new Union Square project
