The luxury residences attached to the Cassa Times Square hotel are up for grabs.
Owner Heng Sang Realty is marketing the 108-unit property, known as LANA, at 515 Ninth Avenue, according to materials reported by Crain’s. It’s not clear how much the Chinese American firm is seeking for the residences in the Chetrit Group-developed property.
There are rent-regulated units in the building, but brokerage Marcus and Millichap indicated those units will be subject to deregulation and all new leases will have market-rate units.
Heng Sang purchased the residential portion of the building in 2017, along with a commercial condominium unit, for $80.5 million. Signature Bank provided a $50 million acquisition loan.
The commercial unit is not for sale. Other parts of the building not for sale include the 112-key hotel on the second through fourth floors, the retail space, the community space and parking.
After Heng Sang purchased the residences along with DHA Capital, which has an undisclosed share of the development, the firms shelved plans to convert the extended-stay apartments into condominiums. It’s not clear if DHA is still involved in the ownership group, though the property is listed on its website.
Joseph Chetrit’s firm developed the property, constructed in partnership with Assa Properties and Ready Property Group in 2014. Before the sale of the residential portion to Heng Sang and DHA, Meyer Chetrit filed a conversion plan for eight residential floors, setting a sellout price at $117.5 million.
Chetrit’s condo conversion plans were withdrawn upon the sale of the residences.
Assa purchased the site from Rosedale Equities in 2006 for $36.3 million. Chetrit and Read Property bought a stake in 2012 through a $15 million investment.
Heng Sang did not immediately respond to a request for comment. DH Capital also did not immediately respond to a request for comment.
— Holden Walter-Warner