Certes mulls Upper West Side development options
Certes Partners has purchased the former Hertz parking garage at 214-218 West 95th Street on the Upper West Side in an off-market transaction for $26.5 million.
Certes currently owns the property next door, 206 West 95th Street and is in the process of developing it.
While plans for the new purchase have not yet been disclosed, the site is suitable for residential development or operations as a parking garage.
The combined assemblage effectively doubles the size of Certes’ site and can hold over 85,000 square feet and 18 stories.
Founded by Elan Hakimian, Sunder Jambunathan, and Eitan Bouskila, Certes Partners is a developer and operator of residential, office and retail assets with over $1.5 billion of acquisitions completed amongst its principals.
This represents the firm’s third closing of 2015.
“We are pleased with the purchase of 214-218 West 95th street and are working with Cetra Ruddy, architect of the record breaking Walker Tower, on evaluating plans for the site,” said Jambunathan, principal of the firm.
“We are committed to the on-going growth of the block and the Upper West Side neighborhood and believe that once completed, the project will add great value to the community, which is underserved for both residential and parking,” added Hakimian, principal.
This is Certes’ second significant assemblage in Manhattan in the last year after it purchased the 30 East 31st Street site, to create a 40-story condo development.
Miami investor bulking up Manhattan portfolio
GFI Realty Services announced the $16 million acquisition of 3750 Broadway, a mixed-use property in Washington Heights.
Ohad Babo represented the seller, Monarch Realty Holdings, while Roni Abudi represented the buyer, a Miami-based investor.
“The seller acquired the building in 2013 and was looking to cash out on its investment,” said Babo. “We were able to take advantage of the reinvigorated neighborhood and procure a purchase price o approximately double what Monarch paid for the property two years ago.”
The pre-war elevator building consists of 32 apartments and four ground-floor retail units.
“A recent entrant to the New York City market, the buyer has acquired several quality properties in the city and was looking to add to its portfolio,” said Abudi.
“The buyer has strong familiarity with Upper Manhattan and recognizes the value of a corner building with upside in this burgeoning neighborhood. With a portfolio that includes other properties in this area, they were very eager to acquire 3750 Broadway.”
Canadians sell rental
Montreal-based Crest Realties has sold a Carroll Gardens apartment building for $21.1 million. Newly constructed in 2011 as a condominium, 100 Luquer Street offers residents direct elevator access into the living rooms, private outdoor spaces, parking, a gym and a private and shared roof deck.
The 20-unit property sold for $947 per square foot, or $1,055,000 per unit.
The sellers, Aaron Drazin and Bruno Caruso of Crest Realties, had fully leased the property at the time of the sale, which realized a four percent capitalization rate on unabated taxes.The building benefits from a 421-a tax exemption which begins to phase out in four years.
Cushman & Wakefield’s Stephen P. Palmese exclusively handled the sale with Robert M. Shapiro and Winfield Clifford.
Treetop branching out
Treetop Development recently completed its second Harlem sale within a week, positioning the company for further growth into New York City’s affordable housing market.
The Teaneck, N.J.-based firm sold a portfolio of 12 five-story walk-ups consisting of 123 apartments and four commercial spaces in Morningside Heights to Novel Property Ventures for $35 million.
Treetop originally bought 222 St. Nicholas Avenue, 2268 and 2500 Frederick Douglass Blvd., 262 West 115th Street and 234-262 West 122nd Street for $22 million in 2013.
Steven Vegh of Westwood Realty Associates served as broker for both the buyer and seller.
The deal comes on the heels of the sale of a 50-unit walk up apartment building at 17 West 125th Street which Treetop Development sold to Thor for $30.6 million last week.
The company purchased the building in 2013 for $13.6 million. Steven Vegh also served as broker for the transaction.
Led by principals Adam Mermelstein and Azi Mandel, Treetop Development continues to expand in New York City.
High sales volume and favorable internal rate of returns has equipped the company to pursue new investment opportunities in emerging marketss.
Mermelstein commented, “We purchased this building at a time when Morningside Heights was first drawing renters north, created value throughout apartment renovations and common area improvements and successfully raised rents while lowering expenses.
“The performance and earnings generated by these assets after reintroduction to the market made them very attractive to institutional investors and owners.
“ With this sale, we’re now very well situated to expand our offering of affordable homes to new residential addresses.”
Compelling returns
TerraCRG sold two mixed-use buildings along Brooklyn’s Fifth Avenue corridor for $10.5 million. Adam Hess, Sam Shalumov, Edward Setton, Kirill Galperin and Amanda Keller brokered the sale of the corner properties at 3901 Fifth Avenue in Sunset Park, and 6901 Fifth Avenue in Bay Ridge.
3901 Fifth Avenue in Sunset Park — home to New York City’s third largest and fastest growing Asian business district — sold to a large Manhattan ownership group for $3.2 million, which equates to a 4.8% CAP rate, $540 psf and 18 times GRM.
The 6,000 s/f building, sold by a Brooklyn family which has owned the building since the 1930s, housed three generations of the family’s dental practice.
The property, consisting of four ground floor retail spaces, three apartments and one office space, offers a significant upside as the residential and retail rents are well below-market.
6901 Fifth Avenue sold for $7,300,000, a 4.8% CAP rate and 15 times the rent roll. Currently occupied by Bank of America, the property offers 10,248 s/f and over 7,000 s/f of available air rights.
