Sherwood Equities announced today that it has acquired 500 West 21st Street, one of the most high-profile development sites in Manhattan's High Line district.

Also known as 175 Tenth Avenue, the site comprises a full blockfront bordering the High Line, encompassing the west side of 10th Avenue, between 20th and 21st Streets.

"This unique site is one of the few development sites that sits directly on the High Line, with light and air on all four sides," declared Jeffrey Katz, CEO of Sherwood. "As of right, it can support a development project of approximately 100,000 square feet, containing residential, hotel, office, and retail space. We're extremely excited to be a part of such a vibrant and remarkable area that has been transformed by the High Line. We have a variety of development options, but, for the time being, we expect to improve the space and temporarily lease it as a gallery, although we may also entertain garage uses."

Sherwood purchased the performing senior loan on 500 West 21st Street from a large commercial bank in May of 2009, at a discount, in an all-cash transaction. The par value of the loan was $24 million.

After filing for foreclosure based on a maturity default that occurred in August of 2009, Sherwood took title to the property, through a deed-in-lieu-of-foreclosure, which closed on May 11th, 2010.

The previous owners of the site were said to be planning a boutique hotel project. The original purchase price paid in 2007 was approximately $50 million.

"This investment allowed us to complete a full debt-to-equity conversion, in less than 12 months, which is extremely swift in New York," says Ryan Nelson, Sherwood's Senior Vice President of Acquisitions and Development. "As it is one of the top development sites in the city, we had to move quickly, and fortunately we're set up to do just that."

"We're continuing to seek and pursue prime investment opportunities in Manhattan," he said, "particularly in-fill development sites, as well as cash flowing properties, and will continue to purchase loans or traditional equity positions in property. While we executed this transaction by ourselves, we look forward to pursuing future opportunities both on our own and with equity partners."

There is currently a 19,000-square-foot one-story garage building on the property, which is temporarily being used as a gallery.

Sherwood Equities is a New York City-based, privately held real estate investment and development company established in 1952. Its other Manhattan properties include 1600 Broadway, 370 Lexington Avenue, 1 Times Square and 2 Times Square.