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AEW Capital’s Hell’s Kitchen rental tower in contract for $193M

The Dermot Company is purchasing the building

520 West 43rd Street and Steve Benjamin
520 West 43rd Street and Steve Benjamin

The Helux, a rental tower in Hell’s Kitchen, is being bought by a group of investors led by the Dermot Company’s Steve Benjamin for $193 million.

The Gotham Organization built the property at 520 West 43rd Street in 1998, according to the New York Post. It contains 375 units, and Boston-based AEW Capital Management purchased it in 2013 for $170 million. Rose Associates has been managing the 35-story building.

The Helux has set aside 20 percent of units for low-income families, although this agreement will expire next year. A source told The Real Deal that Benjamin plans to take advantage of the new 421a tax break, which would extend 15 years and require the new owners to increase the rate of affordable units to 25 percent.

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A Cushman & Wakefield team led by Adam Spies, Doug Harmon, Josh King, Adam Doneger and Marcella Fasulo marketed the building.

The Post said Benjamin’s investment group includes USAA and Dutch pension fund PGGM.

The deal should officially close this summer. [NYP]Eddie Small

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