Luxury NYC Adaptive Reuse Sells of $126M
- Apr 02, 2014
New York—Eastern Consolidated has arranged one of the largest multifamily transactions of the year so far with the $126 million sale of The Nash, a 25-story, 191-unit luxury apartment at 222 East 39th Street in New York. The sale occurred after a full-scale renovation and repositioning by a partnership led by Atlas Capital, Rockpoint Group and The Procaccianti Group. Lloyd Goldman of BLDG Management was the buyer.
The seller partnership picked up the asset in July 2012 when it was still the Eastgate Tower Hotel. The conversion to apartments took advantage of a strong rental market and prime location. Repositioning involved a pre-packaged bankruptcy plan and a completed rehab that reconfigured common spaces and turned guest suits into one-, two- and three-bedroom apartments. A roof deck, fitness center and bike room were also added as part of the program.
The Nash emerged from Bankruptcy in November 2012 and the renovation began in early 2013. Leasing commenced in August 2013 and the property is currently 70 percent full.
“Residential assets of this size, scope, and quality rarely become available for sale, especially in Midtown,” says Brian Ezratty, vice chairman at Eastern Consolidated. “There was a heated bidding process, which enabled us to achieve a maximum price on behalf of the seller. And the buyer now controls one of the best residential rental properties in the neighborhood.”
Ezratty worked with Scott Ellard, director of financial services, in handling the sale. A legal team from Greenberg Traurig LLP, led by Rob Ivanhoe, David Bolen and Minnie Bellomo, were the seller’s attorneys in the transaction. Steven Holm and Andrew Kellner, of Levy, Holm, Pellegrino & Drath, LLP, were the buyer’s attorneys.
Berkadia originates $12M for Seattle asset
Seattle—The Seattle office of Berkadia Commercial Mortgage has funded a $11.8 million first mortgage for Sandpiper Apartment Homes, a multifamily asset located at 3100 208th Street in SeaTac, Wash. Senior vice president Louis Weisman worked with borrower Sandpiper Ventures to secure the 35-year, fixed-rate loan through HUD’s 223(f) program.
The borrower will use the loan to refinance prior debt on the property and help facilitate renovations totaling $1.5 million. Property improvements will include kitchen and bathroom remodels in all 163 units and energy efficiency enhancements to reduce energy and water consumption. The non-recourse, fully amortizing loan features a 4.3 percent interest rate and a 78 percent loan-to-value ratio.
“Berkadia’s Seattle office has closed more than $75 million in HUD financing for properties across Washington in the past year,” says Weisman. “Our experience with HUD allowed us to secure competitive loan terms just 45 days from application submission to loan commitment.”
Sandpiper Apartment Homes sits on more than 9 acres of land across from a new Sound Transit Link light rail station, which is scheduled to begin service in 2016. The property features one-, two- and three-bedroom layouts and is currently 99 percent occupied. Amenities include a fitness center, swimming pool and playground.
Hendricks-Berkadia negotiates sales of two Tampa communities for more than $10M
Tampa, Fla.—Monument Real Estate Services LLC of Coral Gables has sold two Tampa apartment communities to Wisco 7, LLC, a Tampa-based multifamily investment company. The two assets, Newport Riverside (164-units) and Newport Pointe (128-units), sold for a combined $10.225 million.
Newport Pointe, built in 1974, is located at 4900 N. MacDill Ave. and is situated on 5.11 acres with five buildings containing one and two bedroom floor plans that average $568 per month. Amenities included a playground, sports court, clubhouse, laundry facility and a swimming pool with a sun deck.
Newport Riverside, built in 1968, is located at 4111 N. Poplar Ave. and is situated on 7.48 acres with 15 buildings containing one and two bedroom floor plans that average $609 per month. Amenities included a laundry facility, clubhouse, fitness center, carports and a swimming pool with a sun deck.
Hendricks-Berkadia’s Vice President Jason Stanton, based in Tampa, negotiated both transactions with partners Cole Whitaker and Hal Warren out of their Orlando office on behalf of the sellers.
Stanton said the new owner plans a value-add program for both of the communities to increase overall quality of the units and the communities’ curb appeal allowing for future revenue and occupancy increases.