Related Cos. agreed to sell the top 13 floors of a Manhattan luxury-rental building to Kuafu Properties, a New York-based investment firm that pairs Chinese capital with U.S. real estate.
Kuafu intends to convert the 151 units at One MiMA Tower into condominiums, the company said in a statement Monday. The terms of the deal for the property, at 460 W. 42nd St., weren’t disclosed.
“This is an exciting acquisition because of everything One MiMA Tower offers residents,” Shang Dai, chief executive officer of Kuafu, said in the statement. “One MiMA Tower units will fill a void in New York City’s residential market by offering ultra-luxury residences at a more attractive pricing to other new development offerings.”
Related intended for One MiMA Tower tower to be condominiums when construction began in 2008, during a recession that hobbled real estate sales worldwide. As the project neared completion, the New York-based developer decided instead to lease the units at the tower amid strong demand for rentals in Manhattan.
One MiMA Tower spans the top 13 floors of a mixed-use project that also includes a separate 663-unit rental building at the base, called MiMA, that Related will continue to own and manage. While each has a separate entrance, they share amenity spaces.
Residences at One MiMA Tower offer views of Manhattan at more than 500 feet (152 meters) up, according to Kuafu’s statement. Other amenities include a basketball court, outdoor theater and Dog City, a pet spa where owners can arrange for grooming, training and play dates, according to the property website.
“One MiMA Tower is a terrific asset that will have great appeal as a condominium,” Joanna Rose, a spokeswoman for Related, said in an e-mail. “We saw a unique opportunity to capitalize on the value we had created.”
The average sale price of Manhattan apartments jumped to a record $1.87 million in the second quarter as buyers competed for a limited supply of listings, according to a report last week by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. Units in new developments sold for an average of $4.18 million, up 19 percent from a year earlier and an all-time high.
Kuafu, a firm that began in 2013 “with the vision of being the ultimate bridge” between Chinese investors and the U.S. real estate market, has two other projects under way in Manhattan. It’s building a hotel and condo tower called Hudson Rise across the street from the Jacob Javits Convention Center on 11th Avenue, and is planning a residential-and-retail development on the Upper East Side, according to the company’s website.