Greystar Expands in NYC with $240M Buy
The company acquired a 266-unit community situated near retailers, restaurants, entertainment venues, job hubs and public transit nodes in Manhattan’s NoMad neighborhood.
Greystar Real Estate Partners has acquired 800 Sixth Avenue, a 266-unit property situated in Manhattan’s coveted NoMad neighborhood, from Equity Residential. The acquisition, which came on behalf of Greystar’s real estate funds, represents a chance for Greystar to purchase a 16-year-old, well-situated, under-improved, value-add asset in a highly desirable submarket of New York City. The $240 million transaction, which reflects a per unit price of $902,255, closed in January, according to Yardi Matrix data.
The 2003-built property offers a mix of units ranging from studios to two-bedroom apartments. with monthly rents varying between $3,510 for a studio and $7,715 for a two-bedroom unit. The community also features one penthouse unit the rents for $11,500 per month, per Yardi Matrix data.
NoMad offers convenient access to primary job hubs that include Silicon Alley, where tech giants such as Google, Facebook, Twitter and IBM are located. Collectively, those firms occupy more than 3.6 million square feet of office space.
The property also offers quick access to Grand Central Station, Hudson Yards, the World Trade Center and Penn Station. In addition, 800 Sixth Avenue is situated near all of the city’s major subway lines and offers access to New Jersey via PATH.
Greystar plans a capital improvement program resulting in thorough upgrades to apartments, such as replacing older appliances and cabinets, and upgrading finishes including lighting, plumbing and hardware fixtures. Common areas and amenity spaces, among them a residents’ lounge with chef’s kitchen and billiards room, will also be overhauled.
“The acquisition of 800 Sixth complements Greystar’s strategy of acquiring high-quality assets where we can add value through renovation upside and operational improvements in highly desirable submarkets like NoMad, where demand remains high and supply is tight,” said Kevin Kaberna, executive director and leader of Greystar’s U.S. investment platform.
“This property has seen minimal improvements over the years, which presents an opportunity for us to complete significant renovations to compete with luxury new construction in the area while keeping post-renovation rents below our primary competitors,” Kaberna added.
Greystar owns more than 200 units in the NoMad enclave, and manages more than 3,100 more in Manhattan, as well as properties in other markets.
In December, the company paid $59.6 million for a 437-unit Atlanta multifamily community. Most recently, the company teamed up with Banyan Street Capital to develop a $125 million mixed-use property also located in Atlanta.