Major Market Moves in Chelsea and the East Village
Two key transactions highlight shifting ownership in Manhattan.
Vornado Realty Trust is finalizing the sale of 512 West 22nd Street, a fully renovated Class-A office property in Chelsea, for $205 million. The buyer is reportedly Raghsa Real Estate, affiliated with MKF Realty. Vornado and its JV partner, The Albanese Organization, will use the proceeds to repay a $123.6 million mortgage. MKF is also known for acquiring One Union Square South in 2020.
In the East Village, Peak Capital Advisors paid $26 million for a six-story, 18-unit apartment building at 243 East 13th Street. The seller had acquired it in 2011 for $14.5 million. The deal adds to a growing list of recent East Village trades, including the Eis family’s $38 million portfolio sale and Acadia Realty Trust’s $46.8 million acquisition at 85 Fifth Avenue.
Financing, Refinancing, and Workouts
Several property owners are actively restructuring debt.
Feil Organization secured a $40 million refi with Principal Real Estate Investors for a 178-unit Carnegie Hill property, matching the prior loan held by Capital One and Fannie Mae.
L+M Development Partners completed a $36.9 million refinancing for 235 Central Park North in Harlem, replacing an older $32 million loan from Goldman Sachs. The property includes 91 units and notable air rights.
T30 Capital landed a $17.5 million construction loan from SME Capital Ventures for a five-unit development at 44–46 West 8th Street in Greenwich Village. Though permits are still pending, a construction plan is active.
Meanwhile, The Chetrit Organization has extended its $95 million CMBS loan at 393–401 Fifth Avenue. The buildings are currently vacant, but former tenant American Eagle continues lease payments through 2026. SL Green, which holds a mezzanine position, opted to negotiate instead of sell. This follows Chetrit’s recent Soho loan extension with Rialto, the same special servicer on this deal.
Debt Portfolio Sales Continue Post-Signature
Blackstone is steadily offloading Signature Bank debt.
A Blackstone-led venture, with Rialto Capital and the Canada Pension Plan Investment Board, sold another loan portfolio—this time to Bayview Asset Management. The latest batch was marketed in March and totaled $395 million across 121 New York-area loans. Earlier tranches went to Morgan Stanley ($700M) and Maverick Real Estate Partners ($247M). The group acquired its stake in the $17 billion book in December 2023.
New York Development Watch
Several large-scale projects are moving forward.
Stefan Soloviev’s Freedom Plaza proposal, developed with Mohegan, is pushing ahead in Midtown East. The mixed-use plan includes affordable and market-rate housing, gaming, hotel rooms, and public amenities. Uniquely, Soloviev is offering up to 12% of initial public equity to New York residents—pending casino license approval. The project faces some local opposition, but momentum continues as gaming deadlines near.
In Brooklyn, LCOR’s 1515 Surf in Coney Island is now fully operational for summer residents. The 463-unit building, located across from the Boardwalk, is New York’s largest residential project powered by geothermal energy. Thirty percent of its units are affordable, and amenities include a rooftop pool, coworking spaces, and a basketball half-court.
On the Upper East Side, Weill Cornell Medicine has officially opened its $260 million student housing project. The 16-story Feil Family and Weill Family Residence Hall offers 272 fully equipped student units plus recreation, fitness, and social space.
Shake-Up at Fannie Mae
Leadership changes and fraud fallout continue at the GSE.
Kim Betancourt, Fannie Mae’s chief multifamily economist, is stepping down amidst an agency-wide shake-up led by new FHFA director Bill Pulte. Pulte recently dismissed 14 board members and installed himself as chair of both Fannie and Freddie Mac. The moves follow fraud-related losses: Fannie has reserved $752 million for credit exposure tied to questionable sponsors. Multiple firms and individuals have been blacklisted, and more senior exits are reportedly coming.