SOURCE: HFZ Capital Group

HFZ Capital Group

August 06, 2012 11:45 ET

HFZ Capital Group Moves Ahead With Plans to Convert 11 Beach Street

Partners With Joy Construction and New Valley; Douglas Elliman to Take Active Role in Re-Development as Exclusive Broker

NEW YORK, NY--(Marketwire - Aug 6, 2012) - HFZ Capital Group announced today that it is moving ahead with plans to develop and convert into luxury residential condominiums the recently acquired 10-story, approximately 122,000 square foot office building at 11 Beach Street. 

Partners in the project include Joy Construction and New Valley. HFZ and Joy will provide oversight for the project through a combination of its construction, operations and executive management team. Susan de Franca, President and Chief Executive of Douglas Elliman Development Marketing, and her team will advise on issues regarding the sales and marketing process. 

"11 Beach Street is another strategic acquisition for HFZ," said Ziel Feldman, Founder and Managing Principal of HFZ Capital Group. "There is a strong demand in the market for larger, loft style apartments within TriBeCa. We focused on this highly desirable area of the city and recognized the potential of this historic property. Today, we're forging ahead with plans to convert it into a luxury, residential condominium that fits the character and style of the neighborhood. This type of addition to our portfolio -- a historic property in a sought after neighborhood -- has become a signature of HFZ."

Howard M. Lorber, President and Chief Executive Officer of New Valley, stated, "We chose to partner with HFZ on this project because of the prime location of the building and the strong demand for homes in TriBeCa. A well-documented scarcity of inventory, in addition to the neighborhood commanding some of the highest prices per square foot in the city, make this an attractive investment opportunity for us as the market continues to gain momentum."

11 Beach Street is on an "L" shaped plot with 81 feet of frontage on Beach Street, 52 feet of frontage on Varick Street and 101 feet of frontage on St. John's Lane. HFZ has commenced pre-development planning for the proposed conversion. The development will utilize the existing structure, re-coring the building for optimal residential use.

The TriBeCa neighborhood is bounded to the north by Canal Street, to the south by Chambers Street, to the west by the Hudson River and to the east by Broadway. TriBeCa is characterized by its cobblestone streets, stunning lofts, and diverse assortment of retail, dining and nightlife venues. Because of its easy access to upscale conveniences and high quality of life, it is one of Manhattan's most exclusive neighborhoods. New additions to the culturally-rich community include a new branch of the New York Public Library and the spectacularly renovated Hudson River Park. Restaurants Bouley, Corton, Nobu, Megu, Mr. Chow and TriBeCa Grill are nearby.

About HFZ Capital Group:

HFZ Capital Group is a Manhattan-based real estate investment and development company founded by Ziel Feldman. With an expertise in a broad range of real estate disciplines including underwriting analytics, structured finance, investment, development and asset management, HFZ Capital Group has built a name on breadth of talent, a creative approach to deal structuring and a unique ability to manage risk. The company's depth of experience ensures strong returns for both partners and investors. 

About Joy Construction:

Joy Construction is a full service general contracting and development firm primarily focused on multifamily and mixed use projects throughout New York City. Joy was formed in 1995 and has built and/or developed over 70 buildings in New York, representing approximately 6,500 multifamily units. Joy recently completed The Mantena, a 98 unit luxury rental building in Hudson Yards.

About New Valley:

New Valley owns and partners in a broad spectrum of real estate opportunities throughout the United States and abroad. New Valley also owns a controlling interest in Douglas Elliman Realty, which operates the largest residential real estate brokerage in the New York metropolitan area and is one of the largest residential real estate brokerages in the United States.

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