Ares buys 75% stake in Taconic’s Hell’s Kitchen rental for $202.5M

Ares Management through the entity Areg Us Fund X 525 W St Holdco LLC acquired a 75 percent interest from Mitsui Fudosan through the entity Mfa 525 W 52 Street LLC for at $202.2 million at Taconic Partners’ 313-unit rental and retail building at 525 West 52nd Street in Hell’s Kitchen, Manhattan. The transaction values the entire building at $270 million.

The Real Deal first reported the transaction when it was in contract.
The deal closed on January 31, 2025 and was recorded on February 14, 2025. The building is divided into two condominium units, one for the residential apartments and another for the retail that together have 317,533 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $636 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The Real Deal identified the brokers as Adam Spies and Adam Doneger of Newmark.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Ares Management purchased one property in one transaction for a total of $65 million and has no record it sold any properties over the past 24 months.
The seller Mitsui Fudosan had not purchased any other properties and had not sold any properties over the same time period.

The property

The building with 313 residential units in Hell’s Kitchen has 317,533 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 315,855 square feet. The property has a 421A exemption that started in 2020 and expires in 2040. The city-designated market value for the property in 2022 is $111 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

The block

On the tax block of 525 West 52nd Street, PincusCo has identified the owners of four of the eight commercial properties representing 237,079 square feet of the 337,221 square feet. The largest owner is Clinton Association For A Renewed Environment, followed by NYC Department Of Housing Preservation And Development and then Clinton Housing Development Company.

The seller

The PincusCo database currently indicates that Mitsui Fudosan owned at least two commercial properties with 112 residential units in New York City with 3,258,010 square feet and a city-determined market value of $1 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 89 percent of the 3,258,010 square feet of built space are office properties, with D8 properties next occupying 11 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Ares Management owned at least one commercial property with 456 residential units in New York City with 10,320 square feet and a city-determined market value of $1,000,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Brooklyn.

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