Capstone Equities pays $80.8M to Corem Property Group, GDSNY for office in Chelsea

Capstone Equities through the entity 322 7th Ave Owner LLC paid $80.8 million to Sweden-based Corem Property Group and GDSNY through the entity W 28th Development LLC for the newly built office building (O6) at 322-326 Seventh Avenue in Chelsea, Manhattan.
The deal closed on November 18, 2025 and was recorded on November 24, 2025. The property has 87,620 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $922 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.)

To finance the purchase, Capstone Equities borrowed $58.5 million from Prosperity Life Group.

The Commercial Observer reported on this transaction yesterday.
The seller bought the property on July 24, 2018, for $36 million. The signatory for Corem Property Group was David Roll . The signatory for Capstone Equities was Avi Kollenscher . The contract date was June 23, 2025. GDSNY, also known as GDS Development, and Klovern partnered to develop the property. Corem acquired of Klovern in 2022.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Capstone Equities purchased six properties in four transactions for a total of $215.6 million and sold one property in one transaction for a total of $32 million over the past 24 months.
The seller Corem Property Group had not purchased any other properties and had not sold any properties over the same time period. The 87,620-square-foot property generated revenue of $6.5 million or $74 per square foot, according to the most recent income and expense figures.

The property

The office building in Chelsea has 87,620 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 97 feet deep with a total lot size of 7,269 square feet. The lot is irregular. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $38.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation and $8,640 in OATH penalties in the last year.

Development

On the lot, there was one active new building construction project, 121205105, for a 72,696 square-foot office (B) building. The project was submitted by GDSNY and filed by Michael Kirchmann with plans filed April 8, 2019 and permitted May 13, 2020.

The neighborhood

In Chelsea, The bulk, or 35 percent of the 52.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 7th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Chelsea has 2 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Manhattan. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 10 of the 21 commercial properties representing 1,261,874 square feet of the 1,660,370 square feet. The largest owner is Buchbinder & Warren, followed by Lexin Capital and then GDS Development.
On the tax block, there were four new building construction projects totaling 880,958 square feet. The largest is a 480-unit, 351,185 square-foot residential (R-2) building submitted by MAG Partners and filed by Susi Yu with plans filed September 16, 2019 and permitted May 18, 2021. The second largest is a 112-unit, 228,989 square-foot residential (R-2) building submitted by HAP Investments and filed by Lawrence Gerstein with plans filed September 8, 2016 and permitted May 15, 2019.

The majority, or 47 percent of the 1.7 million square feet of built space are office buildings, with elevator buildings next occupying 44 percent of the space.

The seller

The PincusCo database currently indicates that Corem Property Group owned at least one commercial property in New York City with 89,651 square feet and a city-determined market value of $7 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single V1 property. It is located in Manhattan.

The buyer

The PincusCo database currently indicates that Capstone Equities owned at least eight commercial properties in New York City with 1,124,666 square feet and a city-determined market value of $184 million. (Market value is typically about 50% of actual value.) The portfolio has $218.2 million in debt, with top three lenders as Corebridge Financial, Argentic Investment Management, and Aareal Capital respectively. Within the portfolio, the bulk, or 64 percent of the 1,124,666 square feet of built space are office properties, with hotel properties next occupying 36 percent of the space. The bulk, or 64 percent of the built space, is in Brooklyn, with Manhattan next at 36 percent of the space.

Direct link to Acris document. link