$53M Kips Bay rental project to get $12M renovation

The Real Deal - Silverstone Property Group, along with equity partner RWN Real Estate Partners, plan a $12 million repositioning of the Murray Hill apartment building they acquired last week for $53 million.

As reported in the Post today, Silverstone bought the 17-story, 128-unit building at 247 East 28th Street, on the corner of Second Avenue, for $53 million from Samson Management. Steven Vegh, managing partner at Multi Investment Group, was the sole broker in the off-market transaction. The Real Deal learned that Silverstone formed an equity partnership with RWN Real Estate Partners to complete the purchase.

"The property's size, location and below-market rents are what attracted us to the building," said Martin Nussbaum, managing principal of Silverstone.

Nussbaum said the firm plans a complete renovation of the 109,000-square-foot property. They will gut the exterior entrance and replace it with an Apple-style cube. They will be overhauling the exterior, the lobby, all common areas and most apartments. Nussbaum said the apartments, none of which are rent-stabilized, will be modernized with luxury finishes, including "European-style" kitchens, custom cabinets and wide-planked would flooring.

Silverstone also intends to add a private exterior garden, a roof deck, a fitness center and a library and TV lounge, according to Nussbaum.

"Recognizing a great opportunity, we moved quickly to secure the property," said Ari Shalam, managing director of RWN Real Estate Partners, in a statement through Nussbaum, securing the deal within 72 hours of being introduced to the property, according to another source with knowledge of the deal. "We are excited to turn this building into one of the premier high-end rental properties in the area," Shalam said.

The building also has a 3,800-square-foot retail space that's occupied by a Chase bank.

Samson Management and Vegh declined to comment.

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About Multi Capital LLC

Multi Capital, Inc. (www.Multi-Capital.com) is a nationwide finance company specializing in the full spectrum of real estate financing. Multi Capital is known for its expertise in arranging Senior Debt, Mezzanine, and Equity for Development Deals. With its financing experts originating from the real estate development arena, Multi has the expertise needed to syndicate these transactions.

Multi Capital provides a service that is unmatched in efficiency, speed, and thoroughness. Multi currently has over $600,000,000 in development deals in the pipeline.