Silverstone Sells M-U Apartment Tower in Manhattan for $100M

Owner-developer and affiliate of Madison Realty Capital, Silverstone Property Group has sold 247 E. 28th St., also known as The Grayson, for $100 million.

Owner-developer and affiliate of Madison Realty Capital, Silverstone Property Group has sold 247 E. 28th St., also known as The Grayson, for $99.7 million.

The Class A mixed-use property, a 17-story, 109,000-square-foot apartment tower located in Manhattan’s Gramercy/Flatiron neighborhood, had been purchased by Silverstone in February 2012 for $53 million.  The off-market transaction was secured by Steven Vegh of Westwood Realty Associates through a joint venture partnership. Silverstone launched a capital investment in a renovation and repositioning of the property, including an overhaul of the structure’s exterior, the lobby, all common areas and most apartment units.

Building improvements included a new roof, complete window replacement, new electric service to every apartment, plumbing upgrade, façade restoration, elevator upgrades, gas boiler conversion, and creation of a recreation room, furnished roof deck and outdoor amenity space.

The property offers 128 one- and two-bedroom units and a ground-floor retail space occupied under a long-term lease by Chase Bank.

Silverstone principal and co-founder Josh Zegen said the company is pleased with the execution of the project, from its initial purchase through renovation and ultimately resale.

“We were able to reposition and resell the property ahead of schedule, which further validates our overall investment strategy,” he said in a news release.  “We look forward to continued investment activity in Manhattan and the boroughs.”

The property was marketed by Andrew G. Scandalios of HFF, L.P.  The purchaser was represented by George Niblock of Friedman-Roth Realty Services LLC.