Rosewood Realty Group announced the $110 million sale of 14 walk-up rental buildings in Hell’s Kitchen in Manhattan.
Aaron Jungreis represented both the buyer, Black Spruce Management and the seller, The Orbach Group.
The properties are clustered on West 49th Street, between Eighth and Ninth avenues. They would be entirely adjacent, if not for a co-op building and the one-story home of Brazilian steakhouse, Churrascaria Plataforma, which are not included in the portfolio.
The portfolio spans 136,000 s/f and contains 273 rental apartments, the majority of them market-rate. The addresses are 308-310 and 318-340 West 49th Street.
Black Spruce plans to continue operating the apartments as rentals, sources said, despite the portfolio’s potential for redevelopment.
It has about 75,000 s/f of air rights, but only about 10,000 s/f are usable given that the buildings are in the Special Clinton Zoning District.
Orbach Group paid $70 million for the portfolio back in 2008. In 2011, Phoenix Realty Group purchased a majority stake from Orbach for an undisclosed price.
The buildings have a capitalization rate of about four percent, said Rosewood Realty Group’s Aaron Jungreis, who brokered the deal.
There are six retail spaces, which currently house tenants such as the classic barbershop Little Tony & Igor Be Good and pet store Spoiled Brats.
Black Spruce, which focuses primarily on rentals in the Bronx and Brooklyn, has been expanding into Manhattan. Roughly two-dozen blocks south, the real estate investment firm closed in May on the acquisition of a 13-building, 135-unit Chelsea portfolio for $80 million.