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Dalan Management, Elion Partners Team on Purchase of Apartment Portfolio Bordering Google’s New York HQ

Investors Call Themselves Fortunate to Close the $83M Acquisition of Eight Apartment Buildings
October 8, 2018
In the second round of an aggregate $150 million joint-venture investment plan, New York-based real estate investment firms Dalan Management and Elion Partners have teamed to buy an eight-building apartment complex across the street from Google’s Manhattan headquarters for $83 million, or about $814,000 per door.

With this joint venture, the firms are targeting apartment buildings that have the potential to garner higher rents following an infusion of capital into building improvements. Dalan and Elion said they purchased the portfolio through an off-market, or non-advertised, deal, and were fortunate to be able to do so.

"The ability to acquire an entire blockfront directly across the street from Google is something that doesn’t come up every day. We look forward to being involved in the continued success and growth of this corridor of Manhattan," said Daniel Wrublin, principal of Dalan Management.

Known as the Chelsea Complex, the adjacent buildings encompass 102 multifamily units in a mix of one- and two-bedroom units as well as 10 ground-floor retail spaces at 104-116 8th Ave. in New York City. Built in 1905, the five-story property totals 115,046 square feet and carries an average apartment size of 777 square feet.

Elion Partners Managing Partner Shlomo Khoudari said the deal differs from others it has done because of the "unique placement in the heart of New York’s 'Silicon Alley,' a burgeoning hub of the tech industry. Typically, mixed-use real estate is well-positioned for success when it is in close proximity to large employers."

Dalan Management has a history of investing via joint ventures. Its second deal with Elion follows the June acquisition two nearby apartment buildings at 2568 Broadway and 226 W. 97th St. on the Upper West Side. The investors spent $66 million for that portfolio, or about $1.03 million per apartment. They said they plan to split the large pre-war units into smaller apartments as part of a renovation to maximize profit.

And in August, Dalan brought in New York-based investor Marcus Partners to reposition a set of mid-rise office buildings at 10 and 12 E. 33rd St. in the trendy Murray Hill neighborhood, for a total portfolio price of $54.5 million, or about $813 per square foot. The team plans to invest further capital into upgrading the buildings’ façade and storefronts in addition to renovating lobbies and elevators.

Dalan and Elion could not be reached for additional comment by the time of publication.

Please see CoStar COMPS #4530007 for additional information on this transaction.

Diana Bell, New York City Market Reporter  CoStar Group   
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