New Jersey based Treetop Development is looking to collect $150 million for a luxury Queens apartment building it bought two years ago for $85.25 million.
Treetop bought the 420-unit Saxon Hall, in Rego Park, from Vantage in what was then its first foray into the Queens apartment market.
The developer launched a capital improvements program at the 16-story tower that included a new roof, renovated façade, renovated lobby and upgraded common areas and amenities. A rolling renovation to upgrade the apartments has also transformed 50 units with high-end finishes.
The units at Saxon Hall, located at 62-60 99th Street, are considered “extra large” by Manhattan standards and each has a terrace. The building’s amenities now include a 24- hour doorman, new gym and pet spa, storage lockers, bike room, dog walk and children’s playground.
Adam Mermelstein, principal of Treetop Development, said the decision to sell was a strategic one.
“Treetop Development’s business model is as a value added, opportunistic investor who looks to purchase undervalued assets and change the face of properties through aesthetics, revenue growth and management,” said Mermelstein.
“We feel this is an opportune time to reap the rewards of a property which we’ve added significant value to, yet still had considerable upside for a potential purchaser. As with many of our properties, we plan to utilize profits from the sale of Saxon Hall to reinvest in other transactions throughout New York City’s five boroughs.”
Treetop has tapped Steven Vegh, from Westwood Realty Associates, to bring the property to market at a price that equates to less than $300 psf.
“The property offers a unique opportunity for an investor to purchase one of the few remaining rental buildings of this size in an area that is only getting stronger. Rents are going to grow at a fast pace and the building shows tremendous upside,” said Vegh.
Rents in Queens have been trending up, particularly for larger apartments. According to the September Queens rental report from MNS, the largest percentage increase in rent price was seen in two bedroom units in Rego Park, which increased by 4.14 percent since the previous month. According to StreetEasy, rents in Saxon Hall currently range from $1,925 for a one bedroom to $3,350 for a three bedroom.