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HAP sells stake in Chelsea apartments in deal valuing project at over $500M

Eran Polack’s firm sold its 49% share to Japanese partner Daiwa House Group

HAP Investments CEO Eran Polack and 215-225 West 28th Street (HAP)
HAP Investments CEO Eran Polack and 215-225 West 28th Street (HAP)

Eran Polack’s HAP Investments sold its stake in the Maverick building in Chelsea in a deal that values the newly constructed residential property at more than $500 million.

HAP sold its 49 percent interest in the condominium and rental property on West 28th Street to its joint-venture partner, a subsidiary of Japanese homebuilder Daiwa House Group, the developer said.

The deal values the Maverick, which is expected to get its certificate of occupancy in January, at $506 million. That’s the kind of big-ticket price tag appearing more often in recent months as the wheeling-and-dealing that has long characterized New York’s property-investment market returns to something resembling normalcy.

Polack called the sale “an encouraging sign that New York City is on the road to recovery.”

The Maverick consists of two 20-story buildings at 215 and 225 West 28th Street: an 87-unit condominium building and an adjacent rental property with 112 apartments. HAP said the condominium portion of the building is more than 25 percent sold.

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The sale marks Polack’s financial exit from a project he had been working on for the better part of a decade. HAP purchased the property at 215 West 28th Street, across the street from the Fashion Institute of Technology, in 2013 for a little more than $50 million.

At the time, the firm had primarily been focused on developing projects in Upper Manhattan. Polack picked up the property next door at 225 West 28th Street for $30 million in 2016, paving the way for a pair of buildings spanning 312,500 square feet.

Daiwa House Texas, the local subsidiary of Japan’s Daiwa House Group, provided roughly $238 million in construction financing for the project.

The development, designed by DXA Studio, includes amenities such as a 60-foot-long swimming pool and a rooftop deck with a pizza oven. Streeteasy shows the most expensive listing in the building is a nine-room apartment on the 14th floor asking $6 million.

HAP will stay on to finish construction on the project and manage it afterward.

Meanwhile, the company kicked off excavation work earlier this year on its latest project: a 41-unit condominium building at 65 Franklin Street in Tribeca.

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