Stellar Management Scoops 26 Vandam Street in Air Rights Play
By Al Barbarino 12/13/12
Larry Gluck’s Stellar Management has purchased an apartment building at 26 Vandam Streetfor $6.1 million in a play to add air rights to its undertaking at One SoHo Square.
Gluck plans to tack the 15,625 square feet of air rights onto the 80,000 square feet of new office penthouse space being added to neighboring 161 Sixth Avenue and 233 Spring Street.
“Because the air rights are essentially unusable towards the immediate property, Stellar Management will use them for the huge redevelopment of the office buildings next door — that will be a huge win for them,” said Peter Von Der Ahe, a first vice president of investments at Marcus & Millichap, who brokered the deal along with Joe Koicim, a vice president of investments, and David Lloyd.
That’s not to say the 9,385-square-foot property doesn’t have potential in its own right. The building features 21 units — five two-bedrooms and 16 one-bedrooms — and the current one-bedroom average rents fall 46 percent below the market average of $2,500. Converting some of those units to two-bedrooms is also an option.
Full article can be found here.