MAG Partners signs $63.8M ground lease to develop 128 units on Penn South parcel in Chelsea

MAG Partners through the entity 335 Eighth Avenue Owner LLC as tenant signed a ground lease valued at $63.8 million with Penn South’s Mutual Redevelopment Houses for a development site at 335 Eighth Avenue in Chelsea, Manhattan.
On the tax block, there was one new building construction project filed totaling 134,085 square feet. It is a 128-unit, 134,085-square-foot R-2 building submitted by Susi Yu of MAG Partners with plans filed October 27, 2021 and permitted March 31, 2022.
The deal closed on December 22, 2022 and was recorded on January 6, 2023.
The signatory for Mutual Redevelopment Houses was Ambur Nicosia. The signatory for MAG Partners was MaryAnne Gilmartin. Mutual Redevelopment Houses, known as Penn South, as landlord signed a 99-year ground lease with MAG Partners valued at $63.8 million.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer MAG Partners had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Mutual Redevelopment Houses had not purchased any other properties and had not sold any properties over the same time period.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $600 in OATH penalties in the last year.

The buyer

The PincusCo database currently indicates that MAG Partners owned at least nine commercial properties in New York City. They are all located in Manhattan.

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