Renaissance Management Acquires Long Island Community for $233M
- Feb 28, 2020
Family office Renaissance Management has acquired La Bonne Vie, a 915-unit apartment community on the south shore of Long Island, N.Y., for $232.5 million. The sale encompassed 626 market-rate apartments and 289 age-restricted homes for people aged 55 and over in the village of Patchogue.
A CBRE Capital Markets team of Jeffrey Dunne, Jeremy Neuer, Gene Pride, Steven Bardsley, David Gavin and Eric Apfel represented the owner, which the brokerage described in a statement as an undisclosed consortium of partnerships. Yardi Matrix records the seller as La Bonne Vie Organization.
CBRE’s Midtown Manhattan Debt & Structure Finance group secured a $200.7 million senior loan from TPG Real Estate Finance for the buyer’s acquisition and planned renovations of the property. The three-year loan includes the option for three one-year extensions.
Units in the 149-building asset have not been enhanced since they were completed in two phases in the mid-1970s and ‘80s. New Jersey-based Renaissance Management, which is led by Founder & Managing Partner Joseph Kazarnovsky, plans to invest substantially to revamp the asset.
The community offers a mix of one- and two-bedroom apartments with rents ranging from $1,435 to $1,623 as of January, according to Yardi Matrix data. The property comes with extensive amenities that were considered cutting-edge for the multifamily sector when they hit the market, including multiple clubhouses, indoor and outdoor pools, tennis courts, libraries and a gym.
The property consists of two phases, La Bonne Vie II and The Villas, across a more than 192-acre site at 200 La Bonne Vie Drive. The one- and two-story buildings are located near Sunrise Highway and Interstate 495 in Suffolk County, about 40 miles east of Queens, N.Y.
Family office grows
Renaissance Management owns a portfolio of 9,624 apartment units, according to the firm’s corporate website. Kazarnovsky is also co-owner & managing partner of Fieldstone Properties, which has acquired over 15,000 apartment units in the Mid-Atlantic and Southeast regions since its formation in 2001.
The deal for La Bonne Vie is one of the largest multifamily transactions in the tri-state area in recent memory. Early last year, Fairfield Properties, the largest multifamily owner and operator in Nassau and Suffolk counties, scooped up a 1,496-unit deal portfolio from Lone Star Funds for $472.5 million. Dunne’s CBRE team brokered the deal for the collection of seven garden-style communities across various Long Island towns.