Slate JV Pays $120M for Manhattan Asset

600 Columbus Ave. is located on Manhattan’s Upper West Side. Image courtesy of JLL

In the largest single New York City multifamily acquisition to date this year, Slate Property Group and KABR Group, in partnership with Avenue Realty Capital’s equity platform, purchased 600 Columbus Ave., a 166-unit, mixed-use property on Manhattan’s Upper West Side, for $120 million.

The partnership acquired the 14-story, 175,500-square-foot building from its original developer and owner, identified by Bloomberg as Columbus Townhouse Associates. An affiliate of Apollo Global Management provided $68 million in acquisition financing. Bob Knakal’s team at JLL represented both buyer and seller.

Located one block from Central Park, the building has 100 parking spots, 27,500 square feet of retail space and spans the whole block between 89th and 90th Streets. Retail tenants on the ground and second floors include ACE Hardware, Atmosphere Kitchen & Bath, Round Star Soccer and Columbus Pre-School.

The partnership plans to make significant capital improvements including upgrading the apartment interiors, lobby, hallways and other common areas. Residents will also have access to a new luxury amenity package including a refreshed roof deck, state-of-the-art fitness center and resident lounge.

Investments in well-located assets

The building is a short walk to the 1, 2, 3 , B and C trains, providing connectivity to Midtown Manhattan in less than 15 minutes. Residents have access to restaurants, retailers and grocers including Whole Foods, Trader Joe’s, Zabar’s and Westside Market. Numerous cultural institutions such as the American Museum of Natural History, Lincoln Center and the Metropolitan Opera House are located nearby. Columbia University and Fordham University’s Lincoln Center campus are also within close proximity.

Udi Kore, managing principal and co-founder of Avenue Realty Capital, noted that it is difficult to replicate a building like 600 Columbus from the ground up today. Martin Nussbaum, principal at Slate Property Group, referred to the lack of multifamily housing supply in Manhattan in his prepared remarks, as well as the strong dynamics for multifamily over the past two years. That combination contributed to Slate’s decision to take part in this transaction. Slate has acquired more than $300 million in market-rate, value-add properties since last year, for a total of more than 650 units. The firm owns more than 350 apartments under development throughout Manhattan, Queens and Brooklyn.

Slate and ARC have now partnered on nine residential transactions with a combined value of approximately $450 million. For ARC, 600 Columbus marks the firm’s eighth investment during the last 12 months. In 2022, Slate and ARC jointly purchased a development site at 159 Boerum St. in Brooklyn with plans to construct 161 apartments, 30 percent of which will be affordable. The partnership also recently completed and leased up Dutch House, a 186-unit luxury apartment building in Long Island City in Queens, 30 percent of which is affordable housing.