Edited by: JV Staff
While the world is caught up in the news pertaining to a nightmarish pandemic that has taken hold of our lives, the good news is that other significant events are taking place in the world of real estate.
According to the Mansion Global web site, renowned and highly respected real estate investor Joseph Chetrit has netted approximately $25 million for a townhouse that he owned in Manhattan. What makes this real estate transaction so unique in that this deal is one of the largest in New York City to close since the Coronavirus outbreak began in March, according to the Mansion Global web site.
Chetrit is a name that is well known in Brooklyn’s Sephardic Jewish community. As both a savvy investor and philanthropist, Chetrit came from humble beginnings in Morocco. Chetrit was born in Morocco to Simon and Alice Chetrit. He has four brothers: David, Meyer, Jacob and Juda Chetrit. The Chetrit family made their initial fortune in textiles and shipping.
In 2013, Chetrit and his partner David Bistricer, purchased the Sony Tower in New York City for $1.1 billion, according to a Wikipedia report, with plans to convert the building into condominiums. In 2016, they halted the project due to fears of an over-supply of luxury housing; instead selling the building for $1.4B+ to the Olayan Group of Saudi Arabia. Additional projects include the renovation of the Temple Court Building and Annex with Charles Dayan; and the $290 million 2005 purchase along with partners Charles Dayan and Yair Levy of the 800,000 square foot historic 620 5th Avenue and its 2011 sale to RXR Realty, LLC for $500 million.
As an investor who made his primary wealth from buying low in a downturn and selling high later, Chetrit’s strategy has been market timing rather than development. He typically selects structures with flexible zoning (which broadens the pool of future purchasers) in areas seeing a downturn and thanks to his minimal use of debt, he has the ability to wait the market out.
The Mansion Global reported that a person familiar with the deal who chose to remain anonymous said that Chetrit’s Upper East Side pad had been in contract for a much larger amount of money. Due to the sudden emergence of the COVID-19 pandemic and the unsteadiness of the stock market, the selling price of the eight-bedroom, 32-foot-wide townhouse on East 76th Street had to be renegotiated.
Originally, the selling price for the apartment that has six floors and is approximately 13,000 square feet in size was going for $39 million when it was placed on the market in 2017. Other swanky amenities include an elevator, a rooftop garden and a cigar bar, according to the Mansion Global report. The top floor of this luxury pad that has a glass-enclosed gym that overlooks a 36-foot long swimming pool, according to the Douglas Elliman listing with Tal Alexander and Richard Steinberg.
So, how did this property land in Chetrit’s hands to begin with? According to the Mansion Global report, Chetrit plunked down a cool $26 million back in 2007 when he purchased this property from Lenox Hill Hospital in 2007, according to the Mansion Global web site. The property was one of the three townhouses created from the combination of six brownstones, as was reported by the Mansion Global site.
The site reported that he facades of the original buildings were preserved while the interiors were completely reconstructed. Another one of the houses was purchased for $40.25 million in 2018 by the late David Koch, the prominent investor and Republican donor, and his wife Julia Koch.
