Treetop Development has expanded its footprint in the New York City marketplace with the purchase of Saxon Hall, a 16-story high-rise rental building located at 62-60 99th Street in Rego Park, Queens.
The purchase price was $85.25 million.
The acquisition of the 417-unit building is the latest in Teaneck, N.J.-based company’s aggressive plan to significantly grow its portfolio of homes by purchasing rental properties in emerging and undervalued New York City neighborhoods.
Over the past 14 months , Treetop has acquired more than 1,000 apartment homes in neighborhoods including Morningside Heights, Manhattan’s Upper West Side and Harlem.
Jose Cruz and Andrew Scandalios of HFF served as brokers for the transaction and Steve Fleissig of Greenberg Traurig LLP acted as legal counsel for the buyer.
Treetop will institute a capital improvement program to renovate and bring Saxon Hall up to modern standards and reintroduce vacant units at monthly rents reflective of market demand.
The company will invest $5 million to upgrade the exterior façade, improve building systems such as elevators, electric, plumbing and roof and enhance cosmetics in the lobby and hallways. Inside the homes, upgrades upon vacancy will include the addition of stainless steel appliances, ceaserstone countertops, modern kitchens and bathrooms, new cabinetry and hardwood flooring.
“Saxon Hall represents our first foray into a Queens market we’re extremely confident is poised for growth,” saids Adam Mermelstein, principal of Treetop Development, which owns and self manages over 3,000 residential homes throughout New York and New Jersey.
“This neighborhood possesses all the ingredients that have resulted in the growth of up-and-coming areas such as Harlem and East Orange, N.J. where we’ve previously acquired and renovated properties that have jump-started the transformation of once forgotten streets into hidden residential treasures.
“Rego Park offers a built-in infrastructure of existing residential buildings that can be quickly upgraded to meet today’s market standards, opportunities for new residential development, strong desire for affordable housing by young professionals, students and the middle-class workforce; and, of course, proximity to Manhattan.”
Saxon Hall comprises a mix of studio, junior one-bedroom, one-bedroom, two-bedroom and three-bedroom homes, including top floor penthouse units. The doorman building also features laundry rooms, secure parking, storage and on-site playground.
“Located on 99th Street with great access to subways and transportation, Saxon Hall lies in the heart of what makes Queens and Rego Park a desirable address,” said Mermelstein. “The building is three blocks away from the E, M and R trains with a 30 minute commute into midtown Manhattan.
“It’s also just four blocks away from the 950,000 square-foot Rego Center shopping mall and close to CitiField and the Flushing Meadows Corona Park which includes beaches, pools, boating, the Billie Jean King National Tennis Center and much, much more.”
The acquisition of Saxon Hall is part of a Treetop Development’s continuing strategy to purchase several large portfolio-type deals in New York City to significantly increase its presence throughout Manhattan and the Boroughs, according to Mermelstein. The company is actively seeking to acquire additional New York City assets by year’s end.