CSC Coliving signs $171M ground-lease in Hell’s Kitchen with Montgomery Street

CSC Coliving as tenant signed a 99-year ground lease valued at $171.1 million with Montgomery Street Partners as landlord for three commercial condominium units totaling 438,423 square feet that are part of a 461,930-square-foot building with 24 floors at 353 West 57th Street in Hell’s Kitchen. The lease is part of a multi-party transaction including Cain International that was executed on May 4, 2022 and recorded on June 15, 2022.

CSC Coliving financed the repositioning of the asset with a $207 million construction loan composed of an $81.8 million building loan and a $125.2 million project loan.

In the first part of the multi-part sale transaction, Cain International sold its interest in the three commercial condos for a total of $206.85 million to Montgomery Street Partners. The transaction included fee sales of condo units 1701 and 1702 totaling $200.25 million, and a lease assignment for unit 1706, valued at $6.6 million. In addition, CSC Coliving acquired a ground lease for $650,000 directly from Cain, for a 1,598-square-foot unit.

The remaining condo units in the building, the supermarket unit 1703 with 18,236 square feet, and unit 1705 with 3,821 square feet were not part of this transaction and were not owned by Cain.

Montgomery Street, as the new landlord, then signed the ground lease with CSC Coliving for those three condo units.

Cain bought condo units 1701 and 1701 for $268.7 million in November 2020.

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