Boston-based private equity real estate manager Long Wharf Real Estate Partners and New York-based development company Sherwood Equities have sold a 26,000-square-foot development site to the McCourt Group for $167 million, more than triple their initial purchase price.
Long Wharf and Sherwood originally purchased the property, located at 360 Tenth Avenue, for $43.5 million from Barclays Capital Real Estate in May 2011. The bank repossessed the site, which is zoned for both commercial and residential uses, from Extell Development in August 2010.
Long Wharf, the former private real estate arm of Fidelity Investments, spun out as an independent firm in June 2011. Long Wharf made its portion of the investment on behalf of Fidelity Real Estate Growth Fund III, which raised $875 million in equity. The deal, which closed on August 30th, was an off-market transaction made without a broker.
Sherwood is working to make more investments throughout Manhattan’s West Chelsea neighborhood. In a statement from Sherwood, chief executive officer Jeffrey Katz called the company’s plans for the immediate area “extremely bullish.” The developer is planning projects on two other sites in Hudson Yards, totaling more than two million square feet, and is negotiating the acquisition of another site in the district.
“We began investing in this area over 25 years ago, and it is finally in the moment where it is all coming together at a scale that has never been imagined, even in the City of New York,” said Katz in a statement.
McCourt Group, led by former owner of the Los Angeles Dodgers Frank McCourt, intends to purchase an additional 436,000 square feet from the City of New York for a total development of 733,000 square feet. McCourt plans to use the property, which represents his first New York acquisition, for a mixed-use tower.