North Carolina-based affordable housing developer Grubb Fund Management has acquired a 340,000 s/f FiDi development site for $89.15 million.
The company – which builds “essential housing” for people earning between 60 and 140 percent of area median income (AMI) – has also gone to contract on a second site in Queens.
Grubb is planning to build two new properties under its Link ApartmentsSM flag which together will bring 700 units of middle-market housing to New York City.
“Few places have been more impacted by the housing crisis in this country than the New York metropolitan area,” said Clay Grubb, CEO of Grubb Properties. “Our company is dedicated to providing quality rental options for those in the middle of the income spectrum. Link ApartmentsSM and essential housing provide a unique path forward to address New York’s housing crisis, as well as a compelling investment opportunity for investors in our funds.”
The company has acquired 8 Carlisle (AKA 111 Washington Street) from The Ohebshalom family. It plans to build an approximately 50-story with 400 unit property with 22,000 s/f of ground floor retail. Grubb Properties plans to pursue the Affordable New York Housing Program for the development.
Eric Anton at Marcus & Millichap brokered the sale on behalf of the seller. Situated two blocks south of the World Trade Center, the site (general rendering top) is one of the few as-of-right projects in a prime Manhattan location with no problematic tenancy issues, according to Anton. Pink Stone Capital, an LLC connected to Richard Ohebshalom, will serve as a partner in the new development.
In Queens, Grubb is in contract to acquire 25-01 Queens Plaza North in Long Island City. It will be a 17-story Link ApartmentsSM community with 317 units, and 9,000 s/f of retail space. The building will include 30 percent affordable units at less than 130 percent of area median income and 70 percent market-rate units under the Affordable Housing New York Program. Daniel Kaplan and Elli Klapper of CBRE represented the seller.
Located in a Qualified Opportunity Zone, the Queens site is funded by Grubb’s Qualified Opportunity Fund program. The 8 Carlisle location is funded by Grubb’s flagship fund. Grubb Properties is looking at pursuing additional essential housing development opportunities in the New York City metropolitan area.
The two communities mark the ongoing expansion of Grubb Properties’ nationally registered Link ApartmentsSM brand. There are currently nine Link Apartments communities in eight cities, totaling 2,262 multifamily units, with 15 additional communities under construction or announced.
The communities offer an amenity-rich living experience to residents who want to live near transit, employment, and entertainment venues.