Sherwood Equities and Fidelity Real Estate Group have entered into a joint venture to purchase 356-366 10th Avenue, a stalled development site in the rapidly growing Hudson Yards district, for $42 million, according to a source familiar with the transaction. Located adjacent to the northern end of the High Line, the site will allow for up to 556,000 square feet of development.
Its former owner, Extell Development, assembled the site between 2005 and 2007, when the economy collapsed. Although the group had already drafted plans to build a 774-foot-tall, Steven Holl-designed mixed-use tower at the site, the asset was acquired in August of 2010 by Barclays Capital Real Estate Finance via a deed-in-lieu of foreclosure, said officials familiar with the sale.
“This unique site is located at the epicenter of an area that will experience explosive growth over both the near and long term,” Jeffrey Katz, chief executive of Sherwood, said in a statement. “The site is situated at the border of the Hudson Yards and West Chelsea. Billions of dollars in public and private capital are going to be invested in the immediate area… So we’re very optimistic about the potential for growth here.”
The Sherwood-Fidelity joint venture represented itself in the transaction while Robert Knakal and James Nelson of Massey Knakal Realty represented Barclays in the deal.