Legion Investment Group has acquired a development site on New York's Upper East Side close to the intersection of Third Avenue and East 84th Street. The investment firm led by Victor Sigoura paid 12.5 million US dollars for the property at 1497 Third Avenue, according to public property records. The vendor of the property is SMA Equities, headed by Samy Mahfar.
In addition to the site itself, the transaction includes the acquisition of extensive air rights. Sigoura acquired air rights valued at around 17 million US dollars attached to the neighbouring building at 1499 Third Avenue and the nearby property at 1505 Third Avenue. Combined, these rights unlock development potential for a project spanning 25,420 square feet.
A five-storey mixed-use building covering 9,767 square feet currently stands on the plot at 1497 Third Avenue. The additional air rights secured contribute around 15,658 square feet, as first reported by real estate news service PincusCo.
Comprehensive financing and demolition preparations
Legion has not yet publicly disclosed detailed plans for the scheme. However, the company filed a demolition application for the existing building with the New York City Department of Buildings earlier this month. Representatives for neither Legion nor SMA Equities responded immediately to requests for comment.
Legion secured a loan of 118.8 million US dollars from BDT & MSD Partners for the project, according to recorded financing documents. The existing walk-up apartment building previously housed a Chipotle Mexican Grill branch on the ground floor, which closed in July according to the platform Upper East Site. The lender also did not immediately respond to a request for comment.
For SMA Equities, the sale marks the conclusion of a comparatively brief holding period. The company acquired the building at 1497 Third Avenue from Debra Kalimian only last year for the same amount of 12.5 million US dollars.
