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T&E Development buys West Chelsea development site for $33.5M
The 9,875-square-foot lot at 538-542 West 29th Street has 74,063 square feet of development potential under C6-3 zoning and is not expected to require an affordable housing component.
Amsterdam-based PPHE Hotel Group sold the West Chelsea development site at 538-542 West 29th Street to Brooklyn-based T&E Development for $33.5 million, with the deal closing late Thursday afternoon, Commercial Observer reports. Colliers represented the seller, with a team led by Zach Redding, Dylan Kane, and Jared King, while Sporn Group’s Lenny Sporn arranged the transaction on behalf of the buyer. Crain’s New York Business previously reported the sale was set to close this summer. The property was previously intended for a hotel and luxury residences plan that PPHE announced in March 2019, when it formed a joint venture with developer Largo to acquire the vacant lot for about $42 million, with plans for a 98-key hotel and 55 condos. PPHE said in a February statement that changes to New York’s regulatory landscape for ground-up hotel development after its 2019 acquisition drove its decision to part ways with the site.
The lot spans 9,875 square feet and sits between 10th and 11th avenues, with Colliers saying it offers 74,063 square feet of development potential under New York City’s C6-3 zoning within the Special West Chelsea District, and that it would not require an affordable housing component. Colliers’ Redding said West Chelsea has only one condo building currently under construction between West 20th and West 30th streets and pointed to stronger pricing, noting Chelsea sales are up 44 percent since 2020 and nearby developments have averaged about $2,884 per square foot, while he highlighted cost and rate volatility affecting buyer positioning.