By Konrad Putzier
A partnership led by Dalan Management has just turned a $16 million profit on a Hell’s Kitchen building it bought out of distress last year.
Dalan, an investment and management company led by Andrew and Daniel Wrublin, partnered with Standard Property Company to purchase the $6.25 million loan on 351-357 West 45th Street in February 2012.
The joint venture paid $5.8 million for the mortgage on the multi-family property which it just sold to Croman Realty for $22 million.
“This is a great example of how quickly and significantly the market has rebounded since the depths of the recession,ˮ said Daniel Wrublin, noting the Dalan and Standard have jointly acquired over $100,000,000 in loans and properties over the past four years.
“We purchased 10 different loans between 2009 and 2011. Several have been sold already and one in Washington DC is currently on the market for sale. The others are REO properties that we intend to manage for the foreseeable future.ˮ
Dalan has been redirecting some of those profits to “value add opportunitiesˮ such as the six-building Christopher / Bleeker mixed-used portfolio it bought from Noah Osnos during the summer for $34.342 million
“We are looking for multifamily, retail, and mixed use properties that could use some work or creativity in order to create the best possible product,ˮ said Daniel Wrublin, adding that the firm has been highly active in both the sales and investment arenas all year.
“Where it makes sense to lock in a good profit, now is a good time to sell,ˮ he said. “We have also been actively buying where we see opportunity for financial upside, such as the Christpher / Bleeker Street package.ˮ
Aaron Jungreis of Rosewood Realty Group represented Croman Realty in the purchase of 351-357 West 45th Street, an 88-unit property that is currently 50 percent occupied.
Jungreis said the buyer plans to renovate the units and lease them at market rates.