By Sarah Trefethen
A renovated SRO building on the Upper West Side has sold for more than twice its last sale price, recorded in 2007.
Acuity Capital Partners has purchased The Greystone, a rental building at 212 West 91st St., for $139 million.
Brack Capital Real Estate purchased the building in May of 2007 for $62.5, and invested in luxury upgrades in 2009. The building, built as a grand hotel in 1923, includes 362 apartments ranging from studios to three-bedroom units.
Aaron Jungreis and Jake Blatter of Rosewood Realty Group represented the seller and purchaser in the transaction. Eastdil Secured acted as an advisor to the seller. Acuity has taken out a $113.65 million loan facility on the property from Ares Commercial Real Estate, which was arranged by Michael Edery of Paradigm Funding.
The building attracted a lot of interest, Jungreis said, but only a few potential buyers made offers in the range of the asking price, which was close to the sale price.
“There were a lot of people who toured the property, but only a couple of buyers stepped up to the plate,” he said.
The new owners are going into the investment at approximately a four percent cap rate, according to Blatter, but he suggests that that return on the former low-income SRO building has the potential to grow.
“The building has a lot of value, as there are a lot of units that are below market,” he said. “Many of the units have not been destabilized.”
Acuity plans to keep the rental building as a long-term investment, according to Jungreis.
“Our clients plan to keep it as a family jewel,” he said.