A joint venture comprising Alcion Ventures and Slate Property Group has offloaded a rental apartment building near Union Square in Manhattan, realising a loss, Commercial Observer has learned. The transaction concerns the property at 60 East 12th Street, which was sold to Stonehenge Investment and Wraith Capital Group for USD 82.5m. This was confirmed by a source familiar with the deal.
The sale price represents a discount of approximately 23.3 per cent compared to the USD 107.5m Alcion and Slate paid in 2019 to acquire the property in an off-market deal from Heller Realty. Alcion held a 91 per cent stake in the property, while Slate owned the remaining 9 per cent.
Property Description and Background
Built in 1962, the 13-storey building at 60 East 12th Street comprises 133 residential units, ranging from studios to three-bedroom flats. This is complemented by 5,100 square feet of ground-floor retail space, reportedly currently fully occupied by an affiliated Metropolis car park. According to the source, no brokers were involved in the recent sale.
The plans of Stonehenge and Wraith Capital for the property between Broadway and Fourth Avenue have not yet been publicly disclosed. Given that Stonehenge invests in and manages multifamily properties in New York City, it is assumed that the property will likely continue to be used as a residential building. Spokespersons for Alcion, Slate, Stonehenge, and Wraith Capital did not immediately respond to requests for comment.
Business Activities of Alcion Ventures
This transaction occurs at a time when Alcion Ventures is ceasing its operations and liquidating its assets. The Boston-based real estate private equity firm was founded in 2005 and focused on value-add and opportunistic investments in the United States. Alcion has made several property sales in recent years, including residential and mixed-use properties in Brooklyn.
Last year, Alcion and Golub & Company put One East Delaware, a 37-storey apartment tower in Chicago, on the market after acquiring it for USD 146m in 2016, as reported by The Real Deal. Already in 2024, Alcion and Golub lost a Chicago office building at 300 South Wacker Drive to their lender, Deutsche Bank, after purchasing it for USD 155m in 2017.
