ALTO Private Investments, a lreal estate fund manager, announced an exit transaction with the sale of 200 West End Avenue, a retail condominium on the prestigious Upper West Side of Manhattan consisting of four retail units, for $50 million.
ALTO purchased the property with the Klein American Group in 2011 for $31 million.
The retail property, totaling 25,000 s/f, is located on the ground floor of the luxury condominium 200 West End Avenue at 70th Street and West End Avenue. At the time of the purchase, the complex was leased to CVS for 13 years. Following the acquisition, ALTO signed three additional tenants each with 15-year leases, increasing occupancy and rental revenues by 40%.
“Two years after the acquisition and with the improvements we instituted, we sold the property at a gross return of almost three times our original equity investment,” said Mody Kidon, ALTO chairman and co-founder. “This is our fifth exit in the last two years with an average 30% IRR.”
ALTO is currently raising its second fund targeting $100 million of equity and $500 million of commercial real estate investments. Designed for private investors and institutions, ALTO Real Estate Investment Fund 2 is also focused on income-producing commercial properties that provide opportunities to enhance value.
ALTO acquires, manages and leases its properties through the firm’s New York City office headed by Glenn Myles, managing partner in New York. Myles will spearhead the firm’s expansion to markets throughout the U.S. ALTO is targeting investments in cities including Los Angeles, Miami, Houston, Chicago and Seattle.