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Debt & Equity

JLL arranges loan for Morgenstern’s High Line buy

JLL Capital Markets experts arranged the financing for Morgenstern Capital LLC’s purchase of a four-building High Line Portfolio.

Morgenstern Capital  scooped up a four-building High Line portfolio for $27.6 million last week in a deal brokered by Cushman & Wakefield. The four contiguous buildings at 203, 205 and 207 Tenth Avenue and 505 West 22nd Street traded for the first time in 32 years.

505 West 22nd Street

“The High Line Portfolio sold for over $1,200 per square foot at an approximate 3.5 percent cap rate, illustrating strong continued demand for prime mixed-use assets in Manhattan,” said Winfield Clifford of Cushman & Wakefield team that included Brock Emmetsberger, William Barrett and Billy Simons.

Robert Morgenstern of Morgenstern Capital, said, “These properties, together called Highline 22, will be redeveloped and designed by Canvas Property Group, Morgenstern Capital’s in-house development and management firm. This portfolio will become one of the premier limited-service offerings with high-end design and direct Highline views.”

Family owned since 1984, the portfolio represented one of the last opportunities to develop a mixed-use project along the High Line with both air rights and income in place. The portfolio includes 26 apartments and four ground floor retail units. Apartment rents average $50 psf. Five units are rent stabilized. 7,185 s/f of air rights can be used for additional development.

The portfolio’s easterly views are also protected across the street by the Clement Clarke Moore Park and Chelsea Historic District.

JLL secured a $20.7 million acquisition loan from Raymond James Bank. Jonathan Schwartz, along Aaron Appel, Brian Buglione and Patrick Cotter led the JLL team.

According to Schwartz, “The firm intends to implement a significant renovation plan to capitalize on the portfolio’s location within Chelsea, one of New York’s strongest multifamily and retail submarkets. Morgenstern Capital has successfully executed re-positioning strategies across 35 assets, many of which had similar business plans to the High Line Portfolio.”


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