Manhattan High Line Portfolio Commands $28M
Cushman & Wakefield represented the seller, while JLL secured acquisition financing on behalf of the buyer. The four contiguous buildings comprise 26 apartments and four ground-floor retail units.
205 Tenth Ave.
Morgenstern Capital has acquired The High Line portfolio, a group of four contiguous mixed-use buildings adjacent to the High Line in Manhattan’s Chelsea neighborhood. JLL secured $20.7 million in acquisition financing from Raymond James Bank. Cushman & Wakefield represented the seller, a family that has been in possession of the assets since 1984. The portfolio traded for $27.6 million, or roughly $1,200 per square foot at an approximate 3.5 percent cap rate.
Located at 203 – 207 Tenth Ave. and 505 W. 22nd St., the properties offer both street and avenue frontage, as well as unobstructed views of the High Line, an elevated park which runs from Gansevoort Street to Hudson Yards. The assets include 26 apartments and four ground-floor retail units distributed in one multifamily, two mixed-use and a single-story retail property.
Development plans
The new owner plans to redevelop the portfolio, which will be called Highline 22. Morgenstern Capital’s in-house development and management firm, Canvas Property Group, will execute the changes. The buildings also benefit from more than 7,000 square feet in air rights that may be used for additional development.
The JLL Capital Markets team of Managing Director Jonathan Schwartz, Vice Chairman Aaron Appel, Associate Brian Buglione and Analyst Patrick Cotter spearheaded the financing transaction. “The firm intends to implement a significant renovation plan to capitalize on the portfolio’s location within Chelsea, one of New York’s strongest multifamily and retail submarkets,” said Schwartz, in a prepared statement.
Cushman & Wakefield’s Brock Emmetsberger and Winfield Clifford, executive directors, along with Associate Director William Barrett and Senior Associate Billy Simons, represented the seller. “The sale represented only the sixth multifamily transaction in Chelsea this year, but I am certainly not surprised this offering moved considering the superior location,” said Emmetsberger, in prepared remarks.
Image courtesy of JLL
