By: Benyamin Davidsons
Developer Jack Elo was persuaded back to the negotiating table to seal a deal to purchase the building at 15 West 47th Street in Manhattan.
As reported by the Real Deal, Ray Yadidi of the Sioni Group and Isaac and Eli Chetrit finally closed, selling their building in the Diamond District after a five-month delay and a $5 million discount. On Thursday, the 18-story building at 15 W 47th St. closed, selling to an affiliate of the ELO Organization for $110 million, property records show.
As per Crain’s NY, in February, the ELO Organization entered a contract to buy the building for $115 million, but the deal never went to closing. Once the pandemic began and the city was shuttered, the NY developer got cold feet and backed out. Partners Chetrit and Yadidi sent a letter to ELO saying it was in breach of contract for skipping out of the closing. Evidently, the parties worked it out with a discounted price tag. ELO and the Chetrits did not respond to request for comment.
The Chetrits together with the Yadidis’ Sioni Group had originally purchased the building in 2012 for $62.5 million. The 120,790-square-foot building’s tenants are mainly diamond, jewelry and gold dealers. The building has been listed as ‘for sale’ since at least 2017. The Class B office building in Midtown, known as the Exchange, was built in 1926 and has 111 units throughout the 18-floors.
The ELO Organization is a seasoned and active NYC real estate buyer, predominantly in the Garment District. In 2016, the company bought office two buildings at 40 West 38th Street, and 144 West 37th Street for a total price of $37.3 million.
The Chetrits are also not newbies in the field. As per the Real Deal, Isaac Chetrit heads AB & Sons, founded in the early 2000s, together with Abraham and Eli Chetrit. At the end of the summer, the firm purchased a development site in Sheepshead Bay in Brooklyn for $15.5 million. They are working on plans to develop a 200,000-square-foot mixed-use apartment building at the site located at 2870 Ocean Avenue. Mr. Isaac Chetrit is cousin with the prominent New York developer Joseph Chetrit, who owns extensive investments across the city. Joseph Chetrit runs the Chetrit Group together with his three brothers: Meyer, Jacob and Juda. That company is not connected with this transaction.
