Sunlight Development Plans 70-unit Office-to-Resi Conversion in NoMad

Sunlight Development, through Madison 29 Holding LLC, has signed a $65 million contract to purchase a landmark office building at 95 Madison Avenue in NoMad. This 16-story high-rise will be transformed into a mixed-use apartment building featuring 70 residential units, along with retail and office spaces, according to bankruptcy and city Department of Buildings records.

Historical Context and Ownership Dispute

The property has been under the ownership of the Sklar family since 1943. In March 2021, Rita Sklar initiated bankruptcy proceedings. The property had been the subject of a family dispute between sisters Rita Sklar and Lois Weinstein. Weinstein, who had no children or spouse, passed away on November 25, 2019. The sale agreement was signed by family members Michael Sklar and Sharan Sklar for the Sklar family, and Linzhong Zhuo for Sunlight Development.

Bankruptcy Details and Purchase Price Adjustment

According to bankruptcy case 21-10529-shl, the original purchase price was set at $62.8 million but was later increased to $65 million. The buyer's broker was Jonathan Bodner's Two Bins Capital, with no seller’s broker involved in the transaction.

Sunlight Development's Investment History

Sunlight Development has been active in the real estate market, recently acquiring several properties: 49 Ash Street for $18.75 million, 78-01 Queens Boulevard for $9.55 million, and 42-06 College Point Boulevard for $13 million. The purchase of 95 Madison Avenue marks their most significant investment in New York City to date, surpassing their previous high of $48 million for 138-28 Northern Boulevard.

Plans for Conversion and Renovation

Vicki Saali, on behalf of Sunlight Development Group’s Madison 29 Holding LLC, submitted a major alteration application on May 30, 2024, to convert the commercial building at 95 Madison Avenue into a mixed-use facility. The project includes interior renovations from the cellar to the 16th floor and will result in a new certificate of occupancy. This filing is registered under job number M01053870 with the New York City Department of Buildings.

Financial Background and Bankruptcy Proceedings

City property records indicate that the Sklar family, operating through Ninety-Five Madison Company, had long owned the building. In February 2024, they secured a $23 million loan from Goodman Capital. This loan followed nearly three years after Rita Sklar placed the building in bankruptcy protection, listing the property value between $50 million and $100 million and noting $4.8 million in liabilities.