Anbau Enterprises has taken a haircut on a trio of East Village apartment buildings it bought for $58 million in 2016.
GAIA Real Estate just announced it has acquired 50-58 East 3rd Street from the husband-and-wife development firm for $49.5 million.
Known as the East Village Portfolio, or EV3, the package includes three contiguous residential buildings with 71 apartments. Comprised primarily of two-and-three bedroom units starting at $4,500, the properties also house two four-bedroom apartments, four five-bedrooms and one six-bedroom. Amenities include three common roof decks and backyard spaces.
When Anbau acquired the portfolio one quarter of the units were rent stabilized. According to GAIA, 80 percent of the units are currently are free market.
Brandon Polakoff of Avison Young brokered the sale of behalf of GAIA, making its first acquisition as part of its New York Metro recovery strategy.
GAIA’s NY Metro Fund aims to invest in opportunistic residential products within the New York metropolitan area.
Danny Fishman, CEO and co-founder of GAIA, commented, “We are excited to have closed on our first acquisition in NYC since the pandemic. On behalf of our investors, we cannot wait to execute on our business plan.
“In the coming years, we believe that buying NYC multifamily assets in prime neighborhoods at higher cap rates than many secondary US markets will yield strong returns. There are risks, of course, as the NYC market rebounds but we believe that investing is a long game. And as we’ve seen time and time again, one should not bet against NYC in the long-run.”
Fishman said the East Village Portfolio is indicative of the type of assets that will be acquired by the Fund.
Anbau Enterprises is a husband-and-wife real estate development firm known for building high-end residential properties. It was founded in 1998 by Stephen Glascock and Barbara van Beuren. The acquisition of EV3, which collectively spans 52,500 s/f, was the company’s first purchase of an income-producing asset.
Van Beuren told The Real Deal at the time that the company’s move into income-producing assets was to “augment our growing in-house condominium business by investing in New York City markets that have long-term growth potential.”