PGIM Acquires Bronx Multifamily Community for $74M
The property was previously owned and operated by Columbia University.
PGIM Real Estate Fund has completed the acquisition of The Arbor, a 127-unit housing community in the Riverdale neighborhood in the Bronx, New York City. The gross capitalized cost was $73.5 million, according to the buyer.
The fund acquired the asset in a joint venture with Fetner Properties, a New York multifamily specialist. The deal was structured as a sale and leaseback with the seller, Columbia University. Columbia students, faculty and staff live at the property.
The nine-story building, located at 3260 Henry Hudson Parkway, was originally developed in 2008. Common-area amenities include a gym, playroom, roof deck, community room and bicycle storage.
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Beginning in July, the apartments will be re-leased in two phases, with the new owner operating the community as a residential property. The new owners are also planning to undertake a value-add capital improvement program, though the particulars haven’t been released.
A sharp repricing in real estate and a slow, uneven recovery have set up a significant tailwind for the asset class, Soultana Reigle, head of U.S. Equity for PGIM’s Real Estate Investment Group, said in a statement.
PGIM Fund’s 10th Property
For PGIM Real Estate Fund, the deal means that it has completed its 10th property acquisition, representing $260 million in capital deployed and over $632 million in gross property value. PGIM is the investment arm of Prudential Financial, with $1.4 trillion in assets under management. PGIM’s Real Estate Investment Group has $217 billion in assets under management.
The investment giant has done similar deals. Last year, a joint venture between PGIM and Legacy Partners acquired University Village, a 320-unit community in Azusa, Calif. for $92 million. Azusa Pacific University sold the asset.
