Broad Street Development (BSD) along with the investment firm Crow Holdings acquired a 208-unit residential portfolio in Gramercy Park marketed by HFF for $85 million.
The joint venture purchased the mid-rise multifamily properties located at 210 East 22nd Street and 220 East 22nd Street, from GID Investment Advisors, LLC (GID), a private, globally diversified real estate organization.
“We are thrilled to acquire such a strong rental portfolio in one of Manhattan’s most desirable neighborhoods, as we continue to expand our residential platform in New York City,” said Raymond Chalmé of BSD. “We see a great opportunity here to add value by enhancing the product in this very strong rental market. There’s tremendous demand for residences in the Gramercy Park neighborhood, and we are going to meet the market with outstanding product.”
The HFF investment sales team representing GID was led by senior managing directors Andrew Scandalios and Jose Cruz, and directors Jeffrey Julien and Kevin O’Hearn.
Senior managing director Mike Tepedino and associate director Michael Gigliotti, of HFF, arranged the financing. Nationwide Insurance Fixed Rate Debt provided the mortgage for the acquisition. David Israni, managing director at BSD, worked closely with the team on key aspects of the transaction.
BSD and Crow Holdings will immediately embark on a $2 million renovation campaign making significant aesthetic and operational improvements to further maximize the properties’ rental value.
The portfolio consists of two, fully-occupied mid-rise buildings, Gramercy West (210 E 22nd Street) and Gramercy Central (220 E 22nd Street) between Second and Third Avenues.
The properties are mainly comprised of studio and one-bedroom units with multiple floor plans that attract a broad range of tenants. During the past seven years, all units have undergone some renovations, with a number now featuring hardwood floors, balconies/patios, walk-in closets and loft style layouts. The buildings feature modern lobbies, laundry on each floor, elevators and part-time doormen.
“We recognized a great opportunity to bring our selective investment strategy and hands-on management style to these assets, and to duplicate the great success we had at other residential projects including 184 Thompson Street and Maison East on the Upper Eastside,” said Daniel Blanco of BSD.
Chalmé added, “With the increasing demand for quality housing, especially from the influx of technology employees currently fueling the city’s economy, this type of multifamily investment is extremely desirable in today’s marketplace.”
Gramercy West and Gramercy Central are located near the 4, 5, 6, L, N, R, and Q trains, as well as fine dining, shopping and entertainment.
This acquisition is the second time BSD and Crow Holdings have joined forces to expand their residential footprints in Manhattan.
The partnership is also in the planning stages for a new condominium development at 209-219 Sullivan Street, that reflects the historic site and maintains the character of the neighborhood. BSD is also noted for its widely-successful condominium conversions of 140 homes at 184 Thompson Street and 100 luxury condominium homes at Maison East, located on Third Avenue and 81st Street.