Alchemy, Geometry combine to sell-out new SoHo loft conversion.

In one of the largest loft conversions in SoHo in recent years, a partnership between Alchemy Properties, Inc., and corporate affiliates of Geometry Realty, Inc., as financial partner, has successfully converted and sold-out 20-26 Greene Street, according to, Kenneth S. Horn, president of Alchemy Properties, the developer of the project.

Alchemy's principals, Kenneth S. Horn and Joel Breitkopf, and Geometry's David Archibald, Howard Freeman and Adam Meinstein spearheaded the acquisition and redevelopment effort.

The project recently received approval from the City Plannng Commission to convert the building's use from commercial to Joint Living Work Quarters for Artists (JLWQA), a special zoning designation unique to SoHo.

The 45,000 square-foot property a land mark cast-iron building located between rand and Canal streets, has been sold-out, as 10 JLWQA lofts and two commercial lofts were snapped up by buyers involved in a variety of fields. The breakdown of buyers represents the fill spectrum of the SoHo market, attracting people involved with the Internet, art, Wall Street, medicine, entertainment, and fashion industries.

Capitalizing on the demand for upscale luxury lofts and lack of available product in SoHo, the partners decided on very high-end finishes. Prices ranged from $1.1 million to $2.3 million for the 2,600 to 4,000 square-foot units.

The acquisition by Alchemy and Geometry was contracted for during the Global Currency crisis in October 1998, and closed at the beginning of 1999. Despite the liquidity crisis that had roiled the world and local. real. estate markets at that time, Alchemy, with Geometry's responsiveness as a financial partner, was able to move quickly to secure the purchase and obtain competitive mortgage financing through its longstanding relationships in the industry. Alchemy Mortgage Finance, Inc. handled the placing of the mortgage debt and the equity funding.

One of the challenges for he partnership was the fact that the property, at the time of fully occupied by short-term commercial tenants, with the exception of two units that were vacant. A number of long-term tenants were bought out of their leases. Those with expiring leases were either given, moving allowances or assisted in. acquiring, suitable space in Manhattan. The remaining few tenants who remained in the building during the construction were accomodated to minimize the disruption of their businesses.

The zoning change approval process included an intensive review by the Land marks Preservation. Committee, the local Community Board (including its Land Use subcommittee), the Office of City Council-woman Kathryn Freed, the Manhattan Borough President's office, the City Council the Office of the Mayor and, finally, the City Planning Commission for ratification. Deirdre Carson, Esq. of Kurzman Karelsen and Frank; LLC and Arpad Baksa of Arpad Baksa Architects PC oversaw the zoning approval process. Higgins and Quasebarth acted as the project's preservation consultant.

The partnership's approach to the zoning process was to work in a cooperative effort with the various organizations along the approval chain. However, in a worst case scenario, the property. acquisition had a reasonable return maintaining its commercial use.

"The property's complications fit into our, approach, which is to be very -hands-on in creating upside," said Horn. The renovation and conversion of 20 Greene Street represents the first Greene Street loft conversion south of Broome Street in many years, and will solidify the "southern" expansion trend of SoHo started by the SoHo Grande Hotel on West Broadway.

The partnership made use of the ability to transfer mezzanine space as-of-right to design and create a rooftop penthouse addition with spectacular views and light. The property, built in 1880, is in the process of being completely renovated, including the refurbishment of both the front and back facades, installation of a new roof, elevator cab, entranceway, lobby, water tank, boiler upgrade and new electrical and plumbing risers. The building is being restored to its turn of the century cast-iron grandeur.

The apartment finishes include four-inch oak floors, granite countertops with granite backsplashes, General Electric Monogram refrigerators, dishwashers, microwave ovens, three-zone wine coolers; and Viking Professional stoves. All of the master bedrooms are at least 275 square feet, with large walk-in closets and 10 by 10 foot, five-fixture bathrooms.

Geometry Realty is a real estate investment and operating organization established in 1992, and is an affiliate of Geometry Group, Inc., a full service investment firm that conducts its investment advisory and financial management activities through a number of subsidiary and affiliated companies. Geometry targets opportunistic real estate investments requiring equity of up to $5 million per transaction, primarily located in the Northeast and Middle Atlantic regions.