A&E Real Estate today announced it has acquired Cunningham Heights in Queens Village. The residential community features a garden-style network of 22 three-story buildings encompassing 1,056 rental apartments and 623 parking spaces across 25 onsite garages.
Originally constructed in 1951, Cunningham Heights spans four city blocks along the Grand Central Parkway. The community is located in close proximity to JFK and LaGuardia Airports, multiple colleges and universities, as well as Cunningham Park, which is a part of the Kissena Corridor, a 2,816-acre, 4.5-mile stretch of linked Queens parkland.
A&E acquired the buildings, which are currently 99 percent occupied, from a local family for $130 million, or $123,106 per unit, at a cap rate of 5.6%.
The acquisition is the largest to date through A&E’s third and largest real estate fund, AEREP III, which it launched last year. It is also one of the largest single-property transactions for A&E, which now owns and manages approximately 15,000 rental apartments across 267 multifamily buildings throughout the Bronx, Brooklyn, Manhattan and Queens.
Cunningham Heights is A&E’s fifth multifamily acquisition – and fourth in Queens – over the past five months. In January, A&E acquired 92-40 Queens Boulevard in Rego Park and in October closed on Georgian Hall and Ravenna Court, located at 35-64 84th Street and 80-01 37th Avenue in Jackson Heights, respectively. Also in October, A&E finalized the purchase of 400 East 57th Street, a 19-story, 263-unit apartment building in Manhattan.
“This is a great time to invest in New York City,” said A&E Co-Founder Douglas Eisenberg. “From luxury buildings south of 96th Street to workforce housing communities throughout the five boroughs, New York’s residential neighborhoods have consistently proven to be popular, durable and resilient. As was the case with Cunningham Heights, we continue to field a wide range of multifamily investment opportunities that, despite their very strong fundamentals, are not attracting nearly the same level of interest among institutional investors that we saw pre-pandemic.”
A&E President Maggie McCormick added, “Cunningham Heights is a thriving residential community situated in a strong school district and in close proximity to mass transit, parks and local shops. We were particularly attracted by the quality of the buildings and the generous availability of on-site open spaces and parking for residents.”
The loan was provided by Signature Bank, whose seasoned commercial real estate team, headed by Managing Group Director – Senior Vice President, Joseph Fingerman, led the process, along with Elizabeth Arato, Group Director and Vice President.
“This transaction presented yet another opportunity for Signature Bank to partner with premier player A&E Real Estate on a transaction set to benefit the Queens area. Through loans like this, Signature Bank continues to demonstrate its commitment to multifamily housing in New York City,” Fingerman explained.
Arato added, “We are confident Cunningham Heights apartments will continue to flourish under their management and appreciate the chance to work again with the team at our valued partner, A&E Real Estate.”
Jack Bick of Charatan Realty represented both parties in the transaction.
Founded in 2011 by Douglas Eisenberg, John Arrillaga, Jr., and Wendy Eisenberg, A&E has grown from a single 49-unit building in Fort Greene to become a fully integrated real estate platform with in-house asset and property management, leasing and construction capabilities. Its extensive multifamily portfolio ranges from 10-unit rentals in Brooklyn to 1,200-apartment communities in Kew Gardens Hills and Harlem’s Riverton Square.
A&E recently launched an in-house leasing company, dubbed 1898. Named for the year that all five boroughs officially came together to create the City of New York, 1898 further expanded A&E’s internal capabilities and enhanced its commitment to full-service ownership and property management.