Yitzhak Tshuva plans to convert a midtown Manhattan office building into apartments. Privately held US real estate firm Elad Group has bought an office building that houses co-working space WeWork, which is in bankruptcy proceedings, according to reports in New York. Elad Group paid $72 million for the building, The Real Deal reports.
The 20-story building is located at 419 Park Avenue and has 200,000 square feet (18,600 square meters). The report says Tshuva plans to convert the office space into 100 luxury apartments.
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The project is scheduled to be completed in 2026, according to Elad COO Alex Olsen. The building is located in the NoMad neighborhood, north of Madison Square and near the Empire State Building.
The Manhattan office market has been weak over the past two years due to interest rates rising to 5.5%, the highest in more than a decade, as well as the Covid pandemic, which led to remote work and hit demand for office space.
This is not Elad Group’s first experience in converting residential apartments. In 2004, the company bought the Plaza Hotel in Manhattan for $675 million and converted it into 180 luxury apartments, then sold it four years later for $1.5 billion, making a profit of $500 million.
Tshuva is the controlling shareholder (50%) of the Israeli energy exploration and production company. Delek Group Limited (level:DelicateAramex’s stock has fallen by about 15% over the past year, and its market value is 7.6 billion shekels, after the stock price fell by 15% over the past year.
This article was published in Globes, Israeli Business News – en.globes.co.il – on August 26, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.