Real Estate Weekly
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Deals & Dealmakers

Selling points: Harlem portfolio changes hands, Orbach bulking up in Manhattan

Harlem portfolio changes hands again

Adam Verner’s Springhouse Partners has sold a five-building Harlem portfolio for $25.8 million.

Brooklyn-based Galil Management purchased the mixed-use buildings, located at 220–226 West 116th Street and 449 West 125th Street.

Harlem. Photo by neverything/ Flickr
Harlem. Photo by neverything/ Flickr

The portfolio includes 52 apartments and seven retail spaces which Springhouse purchased for $15.4 million in July 2014.

“This just further demonstrates the strong market in Harlem today,ˮ said Steven Vegh of Westwood Realty Associates, the sole broker in the off-market transaction.

“Streets such as 116th and 125th street are irreplaceable and are just getting stronger by the day, especially with retail.ˮ

It is the third time in as many years that this portfolio has changed hands. Adam Verner’s Springhouse Partners purchased the buildings from Treetop Development, which had bought them just a short time before that for $9 million.

During the year of ownership, Springhouse upgraded the buildings common areas, renovated units and repositioned some of the retail, including the newly leased space to Petopia.

According to Vegh, the newest owners are long-term holders strongly invested in the area around Columbia University’s new development who are looking to hold theassets long term.


Orbach continues to bulk up in Manhattan

The New Jersey-based Orbach Group continues to build it’s Upper Manhattan portfolio with the $15.5 million purchase of 320 Manhattan Avenue.

City record show the company closed on the six-story, elevator-serviced building July 1. It contains 44,622 s/f and 55 units, of which 45 are one-bedroom, four are two-bedroom, and six are three-bedroom apartments.

According to Cushman & Wakefield, 33 of the 55 units are subject to a low income tax credit program which is in year 18 of a 30-year term and the remaining 21 are subject to regular New York City rent stabilization regulations.

Cushman & Wakefield’s Hall Oster exclusively handled the transaction with Bob Knakal, chairman, New York Investment Sales, Jonathan Hageman, Teddy Galligan, and Zachary Rosenberg.

“This was an excellent opportunity for purchasers to acquire a building exiting legacy ownership with both short and long term upside,ˮ said Oster.

“With low rents constrained by a regulatory program there was virtually no downside risk given the building’s location on a stellar corner within possibly the most rapidly emerging and dynamic neighborhoods in all of Manhattan.” The sale price equates to approximately $348 per square foot. The property is in close proximity to Columbia University and both the 110th and 116th Streets subway stations.

The Orbach Group has a portfolio of around 2,000 apartments in Manhattan.

Fashion company buys Soho building

Silvershore Properties announced it has sold 19 Howard Street in Soho for $9.6 million — the same building it purchased last August for $4.95 million.

The vacant two-story commercial building, located between Lafayette and Broadway, was purchased by Ribo International Commerce LLC, a holding company.

Silvershore principal Jason Silverstein said it will be used for the first U.S. location of the Chinese upscale fashion company, Taoray Wang, one of the most successful women’s fashion companies led by fashion designer Wang Tao.

Tao launched her company in September, 2014,  and recently debuted her spring collection at the New York Fashion Week. The company’s website states it will open stores in major cities as London, New York and Tokyo within the next three to five years.

“We knew that the target was to look for an end user,” said Silverstein. “The opportunity to occupy a building as a single tenant is obviously an exclusive thing for any kind of company.”

Silvershore Properties, a multi-family owner, founded in 2008 by Jason Silverstein and David Shorenstein, was represented in the sale by Robert Burton of Cushman Wakefield.

East Village building asking $12M

Alex Frants of Besen & Associates has been retained to sell a six-story mixed use building with 20 apartments and two retail units in the East Village.

Located at 133 Avenue D, between 9th and 10th Streets, the 14,600 s/f property is zoned C1-5/R8A.

Apartments are generously sized with four two-bedroom units on floors two through six, according to Frants. “The building has excellent light and lavish windows on all sides,ˮ he added.

Located near Tompkins Park and subways, the asking price is $12 million.

Washington Heights buildings fetch $13M

Two apartment buildings at 574 and 580 West 176th Street have been sold for $13 million.

Cushman &Wakefield announced the sale of the buildings, located between St. Nicholas and Audubon Avenues in Washington Heights.

The two, five-story walkup buildings combine for approximately 43,965 s/f and 62 residential units, of which 14 are one-bedroom, 39 are two-bedroom, and nine are three-bedroom apartments.

The unit mix consists of 58 rent stabilized, two free market, one rent controlled, and one employee unit. Recent improvements to the buildings include the conversion of both boilers to gas and the installation of new burners. The sale price equates to approximately $296 psf.

The properties are close to Columbia Presbyterian Hospital, the Palace Theatre, Highbridge Park, and both the St. Nicholas Avenue and Broadway retail corridors.

“These properties offer significant upside and make for a great long-term investment in a rapidly emerging neighborhood,” said Cushman & Wakefield’s Robert M. Shapiro, who exclusively handled the transaction.

Greenpoint apartment building hits market.

Cushman & Wakefield has been retained on an exclusive basis to sell an apartment building at 305 McGuinness Boulevard.

The property is located between Huron and India Streets in Brooklyn’s Greenpoint neighborhood. The asking price is $32.5 million.

The five-story loft-style building contains 53,124 s/f. Newly constructed, it consists of 38 luxury residential units and 19 parking spaces. Further amenities include a fitness center, common courtyard, and unfinished rooftop which offers views of the Manhattan skyline, Queens, and Brooklyn.

“This offering presents a great opportunity to acquire a new construction residential asset in one of the borough’s fastest growing neighborhoods,ˮ according to exclusive brokers Brendan Maddigan and Clint Olsen of Cushman & Wakefield.

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