Rockrose acquires Chelsea gem for residential conversion.

Rockrose Development Corp., one of New York's most active real estate development and management companies, has acquired 252 Seventh Avenue, one of Chelsea's historical gems, and will convert the building to residential occupancy, announced Henry Elghanayan, Rockrose's CEO.

The 16-story building, totaling more than 700,000 square feet of space, is located on the comer of Seventh Avenue and 24th Street in the heart of the booming Chelsea neighborhood. Rockrose acquired the century-old building in a sealed-bid auction arranged by the property's owner, the General Services Administration. Rockrose outbid eight other prominent developers.

"The residential market is primed for more housing and Chelsea has never been hotter," Elghanayan said. "As prices Uptown and Downtown continue to climb, Chelsea will consistently be looked to as an alternative. With the influx of art galleries from SoHo, fantastic shopping and the opening of the Chelsea Piers Sports Complex, Chelsea is staking its place as one of Manhattan's choice neighborhoods."

Elghanayan said that the firm plans to build up to 350 luxury apartments, taking full advantage of the property's well-built structure and expansive of windows on Seventh Avenue. Additionally, the property's unique basement, ground floor and second floor will provide ample space for a large big-box retailer or movie theater. A boutique hotel is also a possibility for the building base.

"Star store opportunities like this sometimes don't even knock once," said Patricia Dunphy, vice president of Rockrose Development Corp. "We have 40,000 square feet on each of the ground and second floors and an additional 20,000 square feet on the basement level. Chelsea is quickly emerging as one of the City's most exciting shopping destinations, and this location is in the middle of all the action."

Only nine blocks to the north of 252 Seventh Avenue, the Hotel Pennsylvania is undergoing a total rehabilitation in partnership with Planet Hollywood and a sports, entertainment and dining facility for the Penn Station and Madison Square Garden area is being created. To the south, there is Loehmann's and directly around the comer is "Big Box Row," with Bed, Bath and Beyond, Today's Man, Filene's Basement, etc. all lined up from 22nd Street down to 17th Street. Chelsea's movie hubs at 23rd and Seventh will also continue to attract crowds throughout the day and evening.

Built between 1906 and 1914, 252 Seventh Avenue was purchased by The Federal Government in 1946, which installed a succession of agencies through the years, most recently the Veterans Administration.

"We at Rockrose have earned. a stellar reputation for unearthing and polishing true real estate gems," Elghanayan said. "We believe 252 Seventh Avenue will help us continue our tradition of adding value through the sensitive, intelligent redevelopment of real estate."

Rockrose Development has an illustrious track record for real estate value enhancement through redevelopment. The firm, founded in 1970, is one of New York's largest owners and developers of residential and commercial real estate. As the Owners and operators of more than six million square feet of property in the New York metropolitan area, Rockrose has earned a reputation for architectural distinction, sensitivity to the community, and creative, hands-on management.

Today, they are making news for leading the development of the country's newest residential neighborhood: the canyons of Downtown Manhattan. Rockrose, which owns several commercial buildings in the Wall Street neighborhood, was the first developer to take advantage of City and State incentives and is building over 2,000 apartments in this untraditional neighborhood, at 45 Wall Street, 200 Water Street and 99 John Street. 45 Wall Street was the first residential conversion to open its doors to tenants and the first to be completely leased.

Among the firm's most notable developments are the 60-story, 535,000 square-foot office building, Carnegie Hall Tower; and the redevelopment of such well-regarded, successful residential projects as the 723,000 square-foot Archive Building at 666 Greenwich Street, the unique Turtle Bay Towers at 310 East 46th Street, Plaza East at 340 East 34th Street and The Fairfax at 201 East 69th Street. Most recently, Rockrose undertook the successful redevelopment of 100 Jane Street, a residential rental property in the heart of the West Village, which exceeded all expectations and was 100 percent leased just six months after it opened.