Broad Street Development (BSD) has acquired 298 Mulberry Street and 304 Mulberry Street, two multi-family buildings with 182 apartments, with investment partner Crow Holdings, a national real estate investment fund.
The partnership acquired the two-property residential portfolio for $178.5 million from GID Investment Advisors LLC.
This acquisition comes on the heels of BSD’s success at its 215 Sullivan Street condominium project nearby. The ground-up development sold out in four months over the summer at record-breaking Greenwich Village prices exceeding $3,000 psf.
“The acquisition of the Mulberry Street portfolio will provide us with the ideal opportunity to bring our targeted investment strategy and hands-on ownership style to these assets, and to duplicate the great success we’ve had with both our rental and condominium residential projects,” said Raymond Chalme, principal of BSD, which celebrates its 10th anniversary in January.
“Given our intimate knowledge of this neighborhood and our respect for its historic standing and desirability, we see a great opportunity to add value to these assets by enhancing the product and meeting the market’s strong rental demand.”
BSD and Crow Holdings will embark on a $3.5 million renovation campaign comprised of aesthetic and operational improvements to maximize the portfolio’s value. The properties are located at the crossroads of Manhattan’s Greenwich Village, Soho and Noho neighborhoods, just across the street from the Puck Building.
The buildings at 298 and 304 Mulberry Street consists of 182 apartments, 11,825 s/f of ground floor retail space with full frontage on both Houston and Mulberry Streets, and an on-site parking garage.
The seller was represented by the HFF sales team of Andrew Scandalios, Jeffrey Julien and Rob Hinckley.
Mike Tepedino, Michael Gigliotti and Sam Nidenberg of HFF arranged financing, with Michael Eglit and Michael Henry of Blackstone for 304 Mulberry Street and Rob Dirks of Principal Real Estate Investors for 298 Mulberry Street. Eli Dweck of Wachtel Missry LLC, represented BSD in the acquisition.
BSD’s recent successes in the residential property arena include the record-breaking sales achieved at 215 Sullivan Street and the successful condominium conversions of 140 homes at 184 Thompson Street and 100 luxury condominium homes at Maison East.
BSD also handles management and leasing at its Gramercy Portfolio consisting of 208 units between two buildings on 22nd Street. BSD is also a force in the commercial real estate industry. This fall, the company acquired the office tower at 80 Broad Street for $173 million and it about to embark on a major capital improvement campaign.
The purchase followed the successful repositioning and subsequent sale of 55 Broadway and 61 Broadway, for nearly a combined $500 million in 2014.
“Ten years ago, we promised to build a unique real estate business, focused on creating value through hard work, attention to tenants’ needs, excellent workmanship and design, and belief in the Downtown market,” said Daniel Blanco, a BSD principal.
“Today, as we look at our portfolio and our track record, we know we can celebrate our 10th anniversary with great pride at the fulfillment of our promise, and look to a future that builds on this commitment.”