Luxury Murray Hill apartment building sells for $68M

The Knox, a luxury rental building in Murray Hill, has traded hands for $68 million, property records show.

Four Winds Real Estate has purchased the multifamily building from Robert Morgenstern’s Canvas Property Group, according to the deed. The 36-story property has 110 apartments, with rents for available units ranging from $4,600 for a one-bedroom to $8,000 for a two-bedroom, according to StreetEasy.

Four Winds is based on Seventh Avenue near Penn Station and was co-founded by real estate veterans David Schneiderman and Joshua Landau. The company’s portfolio includes the multifamily building at 138 E. 38th St., just a few blocks away from The Knox.

Schneiderman said in a statement that the firm is “thrilled” to be the new owners of the building.

A representative for Canvas did not respond to a request for comment by press time. The multifamily real estate investment firm is based around the corner from The Knox and recently sold a quartet of mixed-use properties in Chelsea for $23 million to Meadow Partners.

Eastdil Secured’s Gary Phillips, Will Silverman and Jeff Organisciak advised the seller on the deal, which was first reported by the Commercial Observer.

Morgenstern purchased the property from Los Angeles-based developer CIM Group for $80 million in 2017, property records show. Prior owner Esplanade Capital developed the building as an extended-stay hotel but allegedly defaulted on its loans. CIM Group then purchased the property at a 2011 foreclosure auction for $54 million, according to property records and reporting from The Real Deal at the time of Morgenstern’s purchase.

CIM Group converted the property into a rent-regulated apartment building in 2015 but ran into trouble with the state attorney general’s office, which found it was using the property as a hotel despite receiving the now-expired 421-a affordable housing tax break, The Real Deal reported. CIM settled with the office in 2016 for $4.4 million.

New York’s sales market has been slow this year thanks mainly to high interest rates and inflation. These high interest rates have also kept many would-be homebuyers in the rental market, contributing to consistently high rents across the city. The median rent in Manhattan hit a record high for the month of April this year at $4,250, according to the latest Douglas Elliman and Miller Samuel report, and the median appears poised to reach an all-time record this summer.

Eddie Small , 2024-05-28 18:26:03

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