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Private Investor Takes Two Multifamily Properties for $55M

NEW YORK CITY-The new owner plans to keep both buildings are rental properties. All total, the acquisition includes 182 residential units.

By Melissa Kress | Updated on February 09, 2006

(To read more on the multifamily market, click here.)

NEW YORK CITY-Two multifamily properties may have traded for conversion prices, but the private investor who acquired them in a $55-million deal plans to keep both as rental properties.The price paid would normally represent figures associated with a buyer who intends to convert the properties to condos, explains Massey Knakal chairman Robert Knakal, however; he tells GlobeSt.com the new owner will give the buildings “significant upgrades” and keep them as rentals.”It was an aggressive price based on continued operation of the properties as rental buildings,” he tells GlobeSt.com. “There is tremendous long-term value based on the gross rent. The cap rate was 2.27% and the gross rent multiple was 19.2%. Given the potential upside, this made sense.”The 90-unit property at 780 Greenwich St. and the 92-unit property 330 E. 63rd St. were part of the Portmann family portfolio. The family decided to sell the properties to take advantage of market conditions, according to Knakal, who represented the seller with partner James Nelson and broker Clint Olsen.780 Greenwich is a six-story, elevatored apartment building totaling approximately 70,355 sf; 330 E. 63rd is a seven-story, elevatored apartment building totaling approximately 70,992 sf. Eighty percent of the combined properties are rent stabilized, Knakal says. In addition to the rental units, each building has a super’s unit.

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