Manhattan Mixed-Use Asset Trades for $23.7M

Marcus & Milichap sells a 177-unit mixed-use asset in Manhattan; and Enterprise closes the first ever Green Refinance Plus Fannie/HUD loan.

680 Saint Nicholas Ave.

New York—Marcus & Millichap Real Estate Investment Services has arranged for the sale of 680 Saint Nicholas Ave., a 177-unit apartment building located near 145th Street in Manhattan’s Hamilton Heights neighborhood. The sales price of $23,650,000 million equates to $202,137 per unit. The asset has five retail tenants and a cell phone tower. Both the buyer and seller were not disclosed.

“This asset is the largest single building sold in Harlem this year, and one of the fewer than ten 100-plus-unit apartment buildings sold in Manhattan so far in 2012,” says Peter Der Ahe, first vice president, investments, Marcus & Millichap. “The sale reflects the interest many investors have in this segment of the affordable housing market.”

“Investors are drawn to affordable housing’s consistent cash flow and long-term upside,” adds Scott Edelstein, associate vice president, investments, Marcus & Millichap. “680 Saint Nicholas Ave. is a prime corner building with a housing assistance payment contract in place through 2015.”

Enterprise closes first Green Refinance Plus loan

Santa Ana, Calif.—Enterprise Community Investment Inc. has closed the first loan under the Green Refinance Plus program, a partnership between Fannie Mae and the U.S. Department of Housing and Urban Development (HUD). The program was introduced in 2011 to incentivize energy and resource efficiency improvements in affordable housing.

The $19.4 million refinance loan was provided to LINC Housing Corp. for City Gardens, a 274-unit asset in Santa Clara, Calif. The loan provided $1.5 million for property improvements, including new gas-fired Energy Star furnaces, low-flow plumbing fixtures, energy efficient lighting, and a passive solar domestic hot water heating system.

“Green Refinance Plus supports Fannie Mae’s efforts to ensure a more sustainable rental housing market that is affordable to low- and moderate-income families,” says Bob Simpson, vice president, affordable lending, Fannie Mae Multifamily. “The program better allows building owners to better manage their energy and resource costs, it helps communities by reducing the environmental footprint of rental properties, and it provides renters with renovated apartments that remain affordable and are healthier to live in.”