Joe Morningstar and Andrew Scandalios of Holliday Fenoglio Fowler's New York office represented both parties in the transaction. Tishman Speyer developed the 35-story, rent-stabilized building. According to Morningstar, the 101 West End Ave. acquisition marks the first acquisition of a Manhattan multifamily property by a publicly traded REIT.
"We believe this is a bellwether transaction for the Manhattan multifamily market and indicative of current market trends," Morningstar says. "This purchase demonstrates this market's strong fundamentals and the desirability of Manhattan multifamily product by institutional investors."
Archstone-Smith funded this transaction through the assumption of $126 million of tax-exempt floating rate bonds, with a current all-in interest rate of 2.4%. The remaining funds came from tax-deferred exchange proceeds from dispositions in non-core markets, including Minneapolis, Clearwater, Fla., and Salt Lake City. "This transaction exemplifies the benefits of our capital recycling strategy, which allows us to take advantage of investment opportunities in our core markets," says Archstone chairman and CEO R. Scot Sellers.
The complex was completed two years ago for a reported $95 million. Located at 64th Street and West End Avenue on a site formerly occupied by a printing plant for The New York Times, the building offers studio, one- and two-bedroom apartments ranging in size from 509 sf to 1,771 sf. Two-bedroom units rent for up to $5,200 per month.
The property also includes 37,000 sf of retail space. Tenants include high-end furniture retailers Domain and Ethan Allen. Building amenities include a 24-hour concierge and doorman, valet services, on-site parking and a 5,000-sf fitness center with an indoor basketball court. The building is located one block west of Lincoln Center and overlooks the Hudson River.
Archstone Smith is a major developer, owner and operator of apartments in major metropolitan areas across the US. The REIT has a total market capitalization of roughly $10 billion and a portfolio including 225 garden communities and high-rise properties totaling 80,019 completed units and 2,565 units under construction.
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