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Deals & Dealmakers

Brits offload Upper East Side apartment buildings

British investor Henley Investments has offloaded a pair of Upper East Side apartment building it bought ahead of new rent regulations in 2017.

Local investor Aulder Capital bought 409 and 413 East 84th Street, two contiguous buildings located in Yorkville (pictured top) for $21.7 million.

Meridian’s Amit Doshi and Shallini Mehra represented both the seller and the purchaser.

“The change in rent laws have caused many owners to change their investment strategy, but on the flip side, we are also seeing many opportunistic investors entering or doubling down on their New York City portfolios,” said Doshi.

Henley bought the Upper East Side Buildings for $21 million and carried out a renovation that included apartment upgrades as part of a planned push into the NYC rental market they billed Henley City Living.

Hayes Court

They company also spent $23 million acquiring  Hayes Court at 33-54 83rd Street in Queens. It also updated that pre-war complex of eight, four-story buildings with modern renovations, including stainless steel appliances, subway tiled kitchens and bathrooms, and tech-enabled LATCH door entry.

The deals were part of a flurry of investment activity in 2017 which saw Henley USA spend $130 million in the American multifamily market.

During the first half of 2021, the private equity real estate firm announced it sold five US multifamily assets for a total of $225 million, including Arbor Crest in North Carolina, three housing communities in Las Vegas, and most recently, Hillside Village in California.

CEO Ian Rickwood commented, “Our activity in the US makes for a strong investment track record in multifamily asset class and is testament to the forward thinking and opportunistic strategy Henley has in place in the US. As we move through 2021, we look forward to continuing our activity in the US and finding new opportunities for our investors.”

409 and 413 East 84th Street feature 75 feet of frontage and span a combined 31,152 s/f. They contain 48 apartments, of which 58 percent are free market.

The property yielded a capitalization rate of four percent, just under $700 per square foot, and a gross rent multiplier of 16.4 times.

SHALLINI MEHRA

According to Mehra, “Aulder currently owns 2,600 units across the Northeast, Mid-Atlantic, and Midwest regions. They believe in the recovery of the New York City market and have a long-term investment horizon for these multifamily assets.”

John Reid, vice president, acquisitions at Aulder, added, “Aulder Capital has a long history of investing in New York City and remains bullish on the long-term grown prospects of Manhattan. We are extremely pleased to have had the opportunity to acquire another high-quality asset on the Upper East Side.”

Attorney Kyle Baltes of Jones Day represented the Henley while Phillip S. Ross represented the purchaser.  

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