Naftali Group Set to Acquire 800 Fifth Avenue Luxury Apartment Building
The real estate landscape in New York City is set for a significant change as Naftali Group, a prominent development and investment firm, has put into motion plans to purchase the luxury apartment tower located at 800 Fifth Avenue. The acquisition is valued at over $800 million.
Details of the Transaction
Naftali Group has secured a contract to acquire the 33-story property, which features 208 residential units. The current owners, Spitzer Enterprises, led by former New York Governor Eliot Spitzer, and Winter Properties, have been instrumental in managing the building. This transition, reported by Bloomberg, comes after the sellers listed the property for sale earlier this year, anticipating a market value that could reach as high as $1 billion.
Brokerage Role and Market Context
The transaction is being facilitated by notable brokers Adam Spies and Doug Harmon from Newmark (NMRK), who have played a crucial role in navigating the sale process. While representatives from the parties involved have yet to provide comments, the deal underscores a growing interest in luxury residential properties in Manhattan’s Upper East Side.
Current Property Overview
The luxury building, spanning approximately 355,000 square feet, boasts an impressive location near Central Park. Currently, the rental units are marketed with monthly rates ranging from $16,500 for two-bedroom apartments to $23,000 for three-bedroom options, as listed on StreetEasy.
Future Potential and Investment Opportunities
Although Naftali Group’s specific plans for the property remain undisclosed, the building has been described as a “major development opportunity.” This phrasing suggests that there may be potential for transformation into for-sale residences, catering to the luxury market trend currently taking shape in the area.
Naftali Group’s Portfolio
Naftali Group is no stranger to luxury development in the Upper East Side, boasting ownership of high-profile properties such as the Benson and Bellemont condominium towers. The firm is also engaged in significant development projects across the river in Williamsburg, Brooklyn, where they are constructing a complex known as Williamsburg Wharf, anticipated to include 850 residential units.
Market Demand for Residential Properties
The potential acquisition of 800 Fifth Avenue coincides with a notable demand for high-end residential properties within the Upper East Side market. Recently, other significant transactions have been reported, such as Extell Development‘s purchase of a 24-story office tower at 655 Madison Avenue, poised for conversion into luxury housing. Additionally, fashion powerhouse Chanel is reportedly eyeing the retail segment of this property, potentially valued at around $450 million.
In a related development, A&E Real Estate recently finalized the acquisition of Rivers Bend, a 22-story, 179-unit apartment establishment at 501 East 87th Street for $116.5 million, highlighting the vibrant activity in the sector.
Isabelle Durso can be reached at id****@****************er.com.