601 West 50th Street, a 127,000-square-foot building on the far west side of Manhattan, was APF Properties’ first acquisition, completed in 1995. Given its location, significant discount to replacement cost and a total acquisition cost of just above $4 million, or $33 per SF, APF recognized the intrinsic value in this Class C building that at the time had several undesirable tenants and was partially utilized as overnight storage for street food carts.
Upon closing, the company began a rigorous effort to create a space for a single large user in this up-and-coming neighborhood. Within three years, APF relocated or bought out all existing tenants and leased the entire building to fashion icon Kenneth Cole for its worldwide headquarters location.
Returns were amplified when the tenant leased the space with no capital improvements and completed its own full renovation to meet its stringent specifications. In 2004 Kenneth Cole acquired the building for $24 million.