‘The Helux’ in contract to sell for $195M
A Hell’s Kitchen rental tower with interspersed affordable apartments is in contract to sell for about $195 million to Steve Benjamin of The Dermot Co. under a new investment platform that includes USAA and PGGM, a Dutch pension fund.
Built in 1998 at 520 W. 43rd St. by the Gotham Organization, the 80/20 project with 375 units was purchased in 2013 for $170 million by the sellers, a core fund of Boston-based AEW, and which has been managed by Rose Associates.
The midblock 35-story building between Tenth and Eleventh avenues has sweeping city, Hudson Yards and Hudson River views in an area burgeoning with numerous rental towers.
Known as The Helux, it was marketed by Doug Harmon, Adam Spies, Josh King, Adam Doneger and Marcella Fasulo of Cushman & Wakefield.
Nearby, the investment brokers recently represented 1199SEIU in the ground lease of 310 W. 43rd St. and 311 W. 42nd St., where Taconic Partners and National Real Estate Advisors will also develop a rental and retail project.
Under earlier affordable-housing rules, The Helux has 20 percent of the units set aside for lower-income families, but its regulatory agreement expires next year.
The city’s new affordable-housing program allows owners to sign a new agreement and up the affordable unit count — say, to a 75/25 — and receive a partial tax abatement.
Sources said Benjamin is investigating that opportunity. He also intends to renovate the lobby, common areas and the extensive amenities.
The parties could not be reached for comment, but the deal is expected to close over the summer.
The purchasing group also owns 21 West End Ave. at Riverside Center.