The Dermot Company, in partnership with Rockwood Capital, LLC, has acquired 250 East Houston St. for approximately $100 million.
BBVA Compass was the lender in the deal for a loan amount of $57.6 million.
The 13-story East Village rental building has 130 studio, one- and two-bedroom apartments and approximately 10,000 s/f of retail. It first opened in 1989 in what has since become one of Manhattan’s most sought-after neighborhoods.
The new ownership plans to initiate renovations to the building’s units, common areas and systems, as well as add amenities that will broaden its appeal among potential residents.
The Holliday Fenoglio Fowler, L.P. (HFF) sales team representing the seller was led by senior managing director Andrew Scandalios and managing directors Jeff Julien and Rob Hinckley. HFF’s debt placement team representing the buyer was led by managing director Steven Klein and director Geoff Goldstein.
“250 East Houston St. is an incredible property and we are very excited to be buying it with our partner, Rockwood Capital, LLC,” said Andrew Levison, principal, director of acquisitions and asset management at The Dermot Company.
“We have an exciting new program for the building which will preserve its existing character while enhancing and modernizing its features. 250 fits perfectly into our existing portfolio.”
Richard Kramer, Director, Rockwood Capital, LLC, said, “A major focus of our investment strategy is to identify properties located in evolving mixed-use neighborhoods that will increasingly benefit from convenient access to transportation and an improving retail experience.
“While 250 East Houston St. enjoys these dynamics today, the opportunity to implement a thoughtful renovation and enhance the property’s position over time made this an appealing long-term investment.”
250 East Houston St. is walking distance of East Village and Lower East Side nightlife hot spots, including Beauty & Essex, Stanton Social, Boulton and Watt and Hotel Indigo’s new rooftop lounge, Mr. Purple.
Also nearby are popular eateries such as Dirty French, Katz’s Delicatessen and Prohibition Bakery, as well as Tompkins Square Park and Hamilton Fish Park.
Formed in 1991 as a real estate investment and management company focused on the multi-family sector, Dermot currently manages nearly $2 billion in assets, and owns, hold investments in, or manages nearly 3,000 apartments.
This is its second big purchase this year as it works to grow its portfoli. In March, Dermot paid a reported $175 million the 309-unit Avalon Kips Bay rental at 377 East 33rd Street.
Rockwood Capital and its principals have invested on behalf of their clients approximately $22.6 billion of real estate through ten value-add vehicles and six separate accounts.