"It's not so much getting away from the New York market which is very dynamic," Stockert tells GlobeSt.com exclusively. "It's very competitive and we want to focus on a market where we can have a bigger impact."
Last week in a conference call, Stockert said Post was "pursuing the possibility" of an asset exchange for its two apartment properties here in order to acquire comparable properties in the nation's capital. To do so, the company hired Eastdil to market the residential sites, Post Luminaria and Post Toscana. Post spent approximately $140 million to develop the two buildings and Stockert believes they are worth "substantially more than that."
Stockert says Post would like to be perceived as an Atlanta- and Washington, DC -focused company. If that exchange of assets is accomplished, the DC market would become the company's second largest measured by capital invested.
"They're [New York City and Washington, DC] great communities," Stockert says. "There's a demand for New York assets. Washington, DC has a bigger development pipeline. It's about allocation and focus."
In August 2001, Post and locally based Clarett Group started their first development, Post Luminaria, at 385 First Ave., the 20-story luxury tower had an estimated build-out cost of $51.5 million. The 150,000-sf residence features 138 rental apartments including studios, one- and two-bedroom homes.
The following year, the JV began construction on Post Toscana at 389 E. 89th St on the Upper East Side. This 210,000-sf residential tower has 199 luxury apartment homes including studios, lofts, and one-, two- and three-bedroom units. In addition to the residential units, the development includes a 7,200-sf grocery store on the ground floor.
The firm cautioned that there "can be no assurance, however, that an attractive asset exchange will be completed." As for a time frame for when the possible transaction might take place, Stockert says, "We're not in a hurry with this."
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