Manhattan Deal Clears Way for Condo Tower

Legion Investment Group and Gindi Capital are planning this project in a historic upscale neighborhood.

Legion Investment Group and Gindi Capital have closed on the final parcels of an assemblage at 38 Gramercy Park East in Manhattan, paving the way for Legion to develop a ground-up residential condominium building. The structure will be the first new condo building on Gramercy Park in a century, according to the developer.

Legion’s acquisition in this deal includes the five-story 37 Gramercy Park East and a co-op at 38 Gramercy Park North. They are the final pieces of the puzzle that will allow the company to develop a 20-story building with a Gramercy Park address, which will give residents of that building access to the two-acre Gramercy Park.

As a neighborhood, Gramercy Park is an upmarket historic area in Manhattan, many of whose buildings date from the 19th century, and include residences as well as boutique shops, cafes and dining options. The focus of the neighborhood is a small green space known as Gramercy Park, which has the distinction of being one of two private parks in New York.


READ ALSO: Top 5 NYC Multifamily Building Sales—December 2024


The park is situated between East 20th Street and East 21st Street, and between Gramercy Park West and Gramercy Park East. Since 1831, the green space has been held in common by the owners of the surrounding structures, who have keys to the park.

The development is a long-term project for Legion, which has been putting the assemblage together for a number of years. Previous acquisitions include four properties, 252-258 Third Avenue, for $72 million, in 2024. Legion also purchased air rights from a neighboring co-op in a transaction that was slowed when an apartment owner took the building’s board to court before later accepting a buy-out.

Legion CEO Victor Sigoura called the latest acquisition “a significant milestone” in a prepared statement, promising that the new building will complement the area’s historic character.

Simultaneously with the acquisition, Legion closed on $335 million in construction financing from merchant bank BDT & MSD Partners and Global Holdings. Newmark’s Jordy Roeschlaub, Nick Scribani, Adam Spies, and Adam Doneger arranged the financing.

Gramercy Park vacancies drop, rents balloon

Gramercy Park is a tight residential neighborhood, even by Manhattan standards, at 0.65 percent vacant in December 2024, down from 1.13 percent a year earlier, according to data by The Corcoran Group. No other Manhattan market is lower, though all are less than 2 percent vacant.

Average rents in the Gramercy Park neighborhood reached a new high in December 2024 of $6,760 a month, the same data shows. That is up 31 percent year-over-year, the largest annual jump for rents in Manhattan.

Also currently taking place in Manhattan, a massive rezoning plan for Midtown is underway. The mixed-use plan, which is currently in review, would create more nearly 10,000 new residential units across a wide area of the city.