Manhattan Property Trades for $105M
The previous owner sold the asset at a discount to its 2015 purchase price.
A joint venture of Canvas Property Group, Declaration Partners and Tokyu Land U.S. Corp. has acquired 210-220 East 22nd St., a 204-unit property in Manhattan’s Gramercy Park neighborhood, for $104.5 million. The seller, PGIM, paid $123 million for the buildings in 2015, Yardi Matrix data shows.
210-220 East 22nd St. is comprised of 82 studios, 75 one-bedroom units, 39 two-bedroom units and eight three-bedroom units. The two adjoining buildings share connectivity on the ground floor as well as a number of amenities.
“The improved capital markets environment presented the seller with an opportunity to exit a well-performing asset to recycle capital,” JLL Senior Managing Director Rob Hinckley told Multi-Housing News. “As for the other side of the deal, 210-220 E. 22nd St. presented the buyers with an opportunity to expand their New York City platform with a trophy asset in a market enjoying very strong fundamentals.”
About half of the units have been renovated and the property currently features a 95 percent occupancy rate. Rents range from just over $3,500 a month for studios to nearly $12,700 for a three-bedroom unit, according to Yardi Matrix data.
Amenities include an attended lobby, a fitness center, resident lounge and an additional laundry facility on every floor. Renovated units have granite countertops, custom cabinetry, stainless steel appliances and vaulted ceilings. They also feature in-unit washers/dryers and walk-in closets. Select homes include private terraces.
Befitting its Manhattan location, the property is near a number of subway lines offering express and local access to the rest of Manhattan, Brooklyn, Queens, the Bronx and New Jersey. Union Square and Madison Square Park are within walking distance.
A JLL Capital Markets team that included Senior Managing Directors Andrew Scandalios, Jeffrey Julien and Rob Hinckley, and Managing Director Steven Rutman, facilitated the transaction. JLL represented both buyer and seller in the deal.
Gramercy Park has historically been and continues to be one of the most supply-constrained submarkets in the city, according to Hinckley.
Manhattan fundamentals outshine most markets
Manhattan multifamily fundamentals remained strong in the first half of 2024, Yardi Matrix reports. The city overall recorded year-over-year rent growth of 4.8 percent during the second quarter of 2024, with Manhattan matching the city, well above the 0.6 percent national rate of increase.
The overall Manhattan occupancy rate in stabilized multifamily assets was unchanged year-over-year, coming in at 97.8 percent as of May 2024, the same data shows. That is above the 94.5 percent national occupancy rate.
Multifamily construction in Manhattan has roughly plateaued, with no properties of more than 50 units coming on line in the first half of 2024, while construction starts totaled 2,617 units—about the same as the same period in 2023. Investor interest in the market has increased, with $621 million in multifamily sales, marking a year-over-year improvement.