Vornado Buys Interest in 1,328-Unit Manhattan Asset

Vornado buys into a large Tribeca asset; Charles Dunn Co. completes an L.A. sale to the tune of $10.8 million; and The Sterling Group opens a luxury asset in Alabama.

Indepence Plaza

New York—Vornado Realty Trust has acquired a 58.8 percent interest Independence Plaza, a 1,328-unit luxury apartment asset located in Manhattan’s Tribeca neighborhood. The property also includes 54,500 square feet of retail space and 550 parking spots.

This is a transaction that has its roots in 2011 when Vornado acquired a 51 percent interest in the subordinated debt of Independence Plaza for $45 million and a warrant to purchase 25 percent of the equity for $1 million. The current transaction values the property at $844.8 million; the property is currently encumbered by a $329.2 million mortgage.

The 58.8 percent interest was acquired by Vornado buying one of the equity partners’ 33.8 percent interest for $160 million, exercising its warrant for 25 percent and contributing the appreciated value of its interest in the subordinated debt as preferred equity.

As a result of contributing the debt for preferred equity and exercising its warrant, Vornado recognized a $100 million net gain for financial statement purposes in the fourth quarter.

Charles Dunn completes $10.8M sale in Los Angeles

Los Angeles—Charles Dunn Co. has completed the $10.8 million sale of a 128-unit property located at 930 S. Bonnie Brae St. in Los Angeles. The regional real estate firm represented Los Angeles-based Melrose Camerford Partners LLC in the sale. The buyer was a newly formed LLC, accordingly dubbed Bonnie Brae LLC. The sale closed at a 6.4 percent cap rate.

The four-story property includes an elevator, pool, spa, recreation room, rental office and a gym.

The Sterling Group opens a luxury asset in Alabama

Providence Place Apartments

Providence, Ala.—The Sterling Group has opened Providence Place Apartment homes, a 226-unit development located in Huntsville, Ala. The asset sits on the corner of Providence and Main and Biltmore on 14.2 acres in the heart of Providence, an amenity in itself.

The $26.4 million asset is expected to reach full completion in May 2013. Amenities include a clubhouse with a internet café, a fitness center with an adjacent child’s play area, a swimming pool, cabana area, an outdoor fireplace and grilling area, car care center and a pet park.