Fetner Properties Sells Interest in Two NYC Communities

New York City. Image by Fotios Tsarouhis

Fetner Properties has sold off its remaining interest in a pair of New York City properties it used to majority own. The developer divested its 10 percent stakes in The Victory and 345 E. 94th St., selling the interest to Empire State Realty Trust, which now owns both properties. The purchase prices could not immediately be learned.

Empire State Realty Trust acquired a majority stake in The Victory and 345 E. 94th St. in for a combined $307 million in December 2021. The combined purchase price included the assumption of $134 million of debt associated with The Victory and $52 million of debt associated with 345 E. 94th St. Fetner Properties continued to manage onsite operations after those deals.

Fetner Properties developed both communities, which are both nearly fully occupied. The Victory, a 45-story apartment community, offers 417 units in studio and one- and two-bedroom floorplans. Residents have access to a fitness center, resident lounge, roof deck and 24-hour concierge and are located near the Hudson Yards neighborhood.

On the east side of Manhattan, 345 E. 94th. St. offers 208 units also in studio and one- and two-bedroom floorplans. The 30-story community’s amenities include a fitness center, resident lounge, outdoor terrace and parking. Residents are also within walking distance of the 96th St subway stop.

Focusing on new developments

Fetner Properties plans to put the proceeds of these sales toward other projects in Manhattan and Queens. The company said it is already under contract to acquire two new assets on Manhattan’s Upper East Side. The firm is also developing three communities in New York City. Two of these are sister buildings in Queens’ Long Island City neighborhood called The Bold and The Italic, which will total 527 units. The developer secured $95 million in construction financing for The Bold, a 27-story building, in November 2021, while The Italic is expected to hit 49 stories when completed. The developer also formed a joint venture with Peakhill Equity Partners to develop 266 W. 96th St. on the Upper West Side. The joint venture secured $125 million in financing from Wells Fargo for the 235-foot project in December 2021. According to Fetner Properties, all three of its developments will have affordable housing components.