Hal Fetner is giving up his remaining stake in two Manhattan apartment buildings in order to focus on other projects in Queens and the Upper West Side.
Empire State Realty Trust, the Malkin family-owned firm that controls the iconic Midtown skyscraper, will has acquired Fetner Properties’ interest in The Victory, a luxury 417-unit tower in Hell’s Kitchen, and 345 East 94th St., a 208-unit Yorkville building, Fetner announced Monday.
Empire State had previously purchased 90% stakes in the two buildings in 2021, part of a surprising shift to residential for the longtime office landlords. A Fetner affiliate had retained a 10% stake in the two buildings until now.
Fetner plans to use the proceeds to maximize its return on two new projects: The Bold and The Italic, a pair of Long Island City towers that will total 527 residential units; and 266 West 96th St., a 23-story apartment tower. Fetner is also in contract to acquire two new buildings on the Upper East Side, the company said in a news release.
“We’re delighted to conclude our sale and partnership with ESRT and wish them luck on their sole ownership of these two quality projects,” CEO Hal Fetner said in a statement. “We will now look to continue to expand our pipeline and our portfolio.”
Both buildings now controlled entirely by Empire State contain about one-fourth affordable units through the 421-a tax abatement program. A potential replacement for the tax break is now under discussion in Albany as part of state budget talks.
“With the fact that office performance is where it is, has the costs that it does, [residential] is something which is more attractive to us at this time,” Empire State CEO Tony Malkin said in 2021, explaining the Manhattan acquisitions.
Nick Garber , 2024-04-01 17:42:37
Source link
