Stillman and Ceruzzi Plan Manhattan High-Rise
- Jan 28, 2014
New York—Stillman Development International and retail investor and developer Ceruzzi Properties LLC., have inked a joint venture agreement to purchase 151 East 86th from Town Sports International Holdings for $82 million. Town Sports owns and operates the New York Sports Clubs fitness chain.
Concurrent with that deal, Stillman also signed a long-term ground lease with Sol Goldman Investments for an adjacent corner property at 147 East 86th Street to complete the development footprint. All together, the project is expected to take about four years to complete.
The developers are planning to build a 210,000-square-foot skyscraper of about 21 stories that will house retail, including a New York Sports Club, on the first four floors of the building. The upper floors of the project will offer residential condominiums.
The project continues the transformation of the East 86th Street corridor, which started before the downturn with Extell Development’s Lucida and Related’s Brompton. Those projects were part of a broader upturn in the retail and residential landscape on East 86th Street.
According to Eastern Consolidated’s Matt Crosby, who represented both the buyer and the seller in the transaction, the sale achieved benchmark pricing for the sellers. “It’s a testament to the strength of the current market for development sites in A-locations,” he says.