103 condo units purchased by Far East investor group

Real Estate Weekly, April 21, 1993

Douglas Elliman has announced that 103 condominium units in The Grand Chelsea apartment building, located at 270 West 17th Street have been purchased by a Far Eastern investment group. The transaction, the largest bulk sale of its kind, closed on March 30th for a total of $8 million.

Douglas Elliman secured the buyer. The Sunshine Group represented the seller who is a major financial institution.

The building is located on the southeast corner of 8th Avenue and 17th, Street in the heart of Chelsea, a neighborhood which is enjoying a substantial rejuvenation. Within close proximity to The Grand Chelsea is the retail landmark Barney's., and the area is well served by popular restaurants such as Le Mardi, Rogers and Barbero, Lola and the Old Homestead.

The Grand Chelsea was built in the late 1980's by developer Philip Pilevsky. The building stands 21 stories high, containing 156 units in addition to the retail condominium located on the ground floor. As a result of the real estate downturn only 53 units were sold at the completion of construction. The remaining 103 units were leased to provide cash flow, showing a yield in excess of 10 percent based on current rental value.

Andrew Gerringer, vice president of Douglas Elliman who introduced the investment group to the property.