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Naftali Group Scoops Up Chelsea Building for $500/Square Foot

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Rising capital gains taxes caused a bit of a panic among sellers of high end real estate toward the end of 2012 and one of the beneficiaries of that panic was the never boring Naftali Group. The guys behind the Kevin Bacon rooftop addition, Park Slope's self-proclaimed Karl Fischer landmark, and other Karl Fischer-designed Brooklyn developments are at it again, having purchased a 75,000-square-foot prewar rental building on West 25th Street for an unusually low $37 million, which comes out to just under $500/square foot, Crain's reports. Naftali approached the building's former owners, the Haruvi family, with an unsolicited offer and managed to complete the off-market deal in just 45 days, sneaking it in under the tax change deadline. They plan to keep the building, in which 32 percent of the units are rent stabilized, as rentals, although a representative of the company commented ominously, "We think this a street where rents will continue to rise," which is the kind of thing we imagine a developer might say while sitting in a huge armchair and stroking a very fluffy cat.
· Chelsea apt. building fetches $37M [Crain's]
· The Naftali Group coverage [Curbed]