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IS the story of Grace Kelly, the future princess, at the Manhattan House, a quintessential Manhattan real estate story?

That is the question that Dr. Jim Sperber, an internist in San Juan Capistrano, Calif., who is also a Grace Kelly fan and the son of a Prudential Douglas Elliman broker, raised in an e-mail message about her stay in the early 1950s at Manhattan House, the first and perhaps grandest white-brick apartment complex on the Upper East Side.

Now that Manhattan House — with 584 apartments, many with balconies, spread across five 20-story towers — is in the midst of a condominium conversion, the sponsors are celebrating Grace Kelly’s years there and have signed an agreement with the Princess Grace Foundation, to permit the use of her image in promotional materials.

But after learning of this development, Dr. Sperber, who has many interests, including providing medical care to an 8-foot 4-inch farmer in Ukraine, went through his collection of Grace Kelly books — assembled from garage sales — and pointed out that Miss Kelly’s father, John B. Kelly Sr., a three-time American gold medalist rower, helped build the Manhattan House.

Mr. Kelly, a wealthy Philadelphia contractor from an Irish family, who ran an unsuccessful campaign for mayor of Philadelphia in the 1930s, founded Kelly for Brickwork, which was a subcontractor on the project. Many Manhattan House residents believe that his company manufactured the distinctive white bricks used on the building, but Toby E. Boshak, the executive director of the Princess Grace Foundation, said that his firm was hired as a construction contractor to do the brick work and put up the distinctive white walls of the project.

As for the notion that he used his pull, as any father might, to get his daughter into a coveted apartment in the building, the evidence is far from certain. On the one hand, biographies detail a difficult relationship that Grace Kelly had with her father, and she yearned for financial independence from her family. On the other hand, family background was carefully reviewed at the Manhattan House and other prominent buildings in Manhattan.

Patricia Lynch, a former television news investigative producer for NBC Nightly News, who has lived in Manhattan House since 1975, said that when she applied for admission 25 years after Grace Kelly moved in, the building had a long waiting list and connections were needed to get to the top of the list. She said that she wore white gloves for an interview in which the building manager queried her about her parents and her family background, even though she had written two books and was financially independent at the time.

One biography, “Grace,” by Robert Lacey (Putnam Adult, 1994), said that Miss Kelly, who was in her early 20s, was “installed” there by her father in an apartment that her mother decorated. Another book, “The Bridesmaids,” by Judith Balaban Quine (Weidenfeld & Nicolson, 1989), who was a bridesmaid at her wedding to Prince Rainier in Monaco, said that the Kellys had given their daughter “permission” to leave the Barbizon Hotel and move into Manhattan House, but wanted her to find a roommate. The book also suggested that the apartment was decorated to the taste of Miss Kelly’s mother, Margaret.

In an interview, her first Manhattan House roommate and another bridesmaid, Sally Parrish Richardson, said that she moved in after Miss Kelly and did not know how she got the apartment.

The Manhattan House sponsors have commissioned four designers to create model apartments “with the spirit of Princess Grace,” bringing their “unique vision of grand, high-style living at Manhattan House.”

But by some accounts, despite her increasingly glamorous life, Grace Kelly’s furnishings at Manhattan House were, alas, quite plain. “The living room was without charm, character or gender,” Ms. Quine wrote. “It wasn’t ugly; it was utterly bland. Furniture, fabrics and colors alike were all resolutely practical. Everything seemed brown.”

By JOSH BARBANEL, Published: October 28, 2007, available here.
In a related article, check out House Beautiful Magazine’s feature on interior designer Jamie Drake’s Kelly Green decorating scheme from the 2008 Kips Bay Designer Showcase, hosted by Manhattan House.

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NEW YORK–(BUSINESS WIRE)–O’Connor Capital Partners has completed the sale of the Upper East Side retail condominium at Manhattan House to Madison Capital for $86 million. The deal marks a major milestone for the $1.1 billion condominium conversion of Manhattan House, a modernist and architectural icon with grand residences that was designated a historic landmark in 2007 by the New York City Landmarks Preservation Commission.

The Manhattan House retail condominium is a strategic investment with considerable future growth potential, said Brian Fallon, partner at OConnor Capital Partners. Its proximity to the luxury retail core of New York City and position at the base of the top luxury residential conversion development in the city make this the prime location for retail traffic.

OConnor Capital Partners successfully attracted new top-tier tenants, including Lululemon Athletica, a yoga-inspired athletic apparel company with over 80 locations in Canada, the United States and Australia; Staples Express, the United States largest office supply store and business resource center; ALDO, an international leather goods retailer; and Icon Parking Systems. Existing tenants include Club Monaco, a subsidiary of Polo Ralph Lauren Corp., and Madame Paulette.

Read the Full Story at Biz.Yahoo.com.

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$86M Retail Condo Buy Furthers $1.1B Conversion, By Natalie Dolce

NEW YORK CITY-O’Connor Capital Partners has completed the sale of the Upper East Side retail condominium at Manhattan House to Madison Capital for $86 million. The deal marks a major milestone for the $1.1 billion condominium conversion of Manhattan House here. Brian Fallon, partner at O’Connor Capital Partners, tells GlobeSt.com that the business plan for the Manhattan House conversion always anticipated the sale of the commercial premises prior to year end 2008. “Given the capital markets, this is a significant milestone for both O’Connor Capital Partners and Madison Capital.”

Fallon tells GlobeSt.com that the commercial premises were offered to the market during the summer. He further notes that it was a very “spirited competition” with “many interested parties.

As GlobeSt.com previously reported, the Real Estate Finance Bureau of the State of New York Office of the Attorney General recently declared locally based O’Connor Capital Partners’ Manhattan House’s offering plan effective. The Attorney General had accepted for filing an amendment to the offering which authorizes formation of the condominium here at 200 E. 66th St.

Fallon tells GlobeSt.com that the conversion is “going extremely well with Phase I sales having just been completed and Phase II units just being offered to the marketplace consistent with our plan.” He notes that the retail condo here is a “strategic investment with considerable future growth potential. Its proximity to the luxury retail core of New York City and position at the base of the top luxury residential conversion development in the city make this the prime location for retail traffic.”

“Madison Capital is extremely pleased to have been able to acquire a significant and exceptional retail asset in the heart of the Upper East Side,” says Richard Wagman, managing partner at Madison Capital, in a prepared statement. “The high caliber of tenancy, together with the prime location and high quality of this asset, were what attracted Madison to this premier core plus opportunity. We continue to actively pursue new acquisitions as our historically disciplined approach to underwriting allows us to acquire assets despite market volatility.”

For the full GlobeSt.com coverage, visit this site. Archive subscriber membership is required to view the full article.

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NEW YORK, Oct 07, 2008 (BUSINESS WIRE) — O’Connor Capital Partners has completed the sale of the Upper East Side retail condominium at Manhattan House to Madison Capital for $86 million. The deal marks a major milestone for the $1.1 billion condominium conversion of Manhattan House, a modernist and architectural icon with grand residences that was designated a historic landmark in 2007 by the New York City Landmarks Preservation Commission.
The 102,842-square-foot retail, parking and office condominiums at Manhattan House, one of the Upper East Side’s largest retail offerings, includes seven street-level stores on Second and Third Avenues between 65th Street and 66th Street, four professional office spaces on 65th and 66th Streets, and a parking garage on 65th Street.
“The Manhattan House retail condominium is a strategic investment with considerable future growth potential,” said Brian Fallon, partner at O’Connor Capital Partners. “Its proximity to the luxury retail core of New York City and position at the base of the top luxury residential conversion development in the city make this the prime location for retail traffic.”

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Apparently Manhattan’s mid-priced condo market is still chugging along. We hear that the marketing team at Manhattan House has hit their sales quota for the Upper East Side luxury condominium building as of earlier this week, which now makes the offering official for all concerned.

In other words, the building’s partial condo conversion is now a go.

“We’ll thrilled that we were able to achieve our goal earlier than anticipated,” said a jubilant Dolly Lenz, the vice chairman of Prudential Douglas Elliman who spearheaded the sales effort. “I was fortunate enough to work for Jerry O’Connor, whose vision was spot on.”

And Princess Grace’s provenance didn’t hurt.

Lenz added that $70 million in contracts were signed in just the last few weeks.

The block-long, five-tower property, which was the site of this year’s Kips Bay Decorator Show House, features condos that range from $1 million to over $20 million.

We expect now that the plan has been declared effective in legal terms, many who were on the fence will jump in with their deposits.

See http://www.nypost.com/seven/05292008/realestate/90m_flip_out_112899.htm for full article.

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