Global One Real Estate Fund Acquires Promenade Apartments
- Oct 14, 2013
New York— Robert Nelson’s Global One Real Estate Fund, in conjunction with the NYAH Preservation Fund II, a joint venture between Citi Community Capital (CCC) and L+M Development Partners, has acquired Promenade Apartments, a 318-unit, 32-story apartment community overlooking Manhattan’s Harlem River.
The property, a state-administered Mitchell-Lama development, was purchased for $18.5 million, bringing to more than three million square feet the amount of residential real estate owned in New York City by Nelson.
“There are so many different aspects of Promenade Apartments that attracted us,” Nelson, the principal of the Global One Real Estate Fund and Nelson Management Group Ltd., an affiliate of Global One, tells MHN. “The size, with almost 320 units under one roof, is always nice, and allows us to reap economies of scale. The location sits on the riverfront, so you have unobstructed views going for miles. We are a block away from Metro North Railroad that goes into Grand Central Station in Manhattan. It’s two blocks to the subway. There’s ample parking. And the middle-income workforce housing aspect of the property fits right in our wheelhouse.”
That’s not to say the deal was quick or simple. “My father always taught me that no deal you do will ever be easy,” Nelson says. “I started Nelson Management Group, but prior to that I worked for my dad. The more entities you have involved in the transaction—the banks, private equity partners, the city, the state, our lender—the more difficult it is to satisfy everyone’s objectives.”
The property was built in 1972, and retains its original boiler, roof and common areas. “We specialize in acquiring this exact type of property and investing in building systems to lower operating expenses, while improving tenant amenities so the residents get the type of building they deserve and can be proud of,” Nelson says. “Furthermore, with the cooperation of the city, state, the local elected officials and the Tenants’ Association, we will be able to do this while preserving workforce and middle-income housing.”
What will the acquisition mean to current and future residents? Nelson projects improvements to building systems will allow for fuel consumption to be reduced by approximately 45 percent. “We’re putting in new elevators as we speak, and we’ll put in a new roof, new boiler, renovate the hallways and add new elevator cabs and new lobbies,” he says. “The building was constructed 41 years ago, and as far as aesthetics are concerned, it has not been updated. Residents will be happier to invite family members and friends to their homes, and feel proud that they live in a beautiful environment that‘s as attractive as it is well built and maintained.”