Morningstar, along with managing director Andrew Scandalios, will lead the investment sales team on behalf of the owner. Morningstar tells GlobeSt.com that the building has commanded "a lot of interest" from potential buyers thus far, but he didn't disclose any identities at this time.
He explains that he cannot disclose the seller's identity at this time, but public records indicate that Massachusetts Mutual Life Insurance Co. is the seller. Morningstar says that the reason for selling is "to take a profit…pure and simple." He notes that although there is no set bid date, it should most likely be within three to four weeks.
Riverbank West is located at 560 W. 43rd St. in the West 42nd Street corridor, a residential submarket comprised primarily of newly constructed luxury rental and condominium product. The property, which historically has enjoyed occupancy in the high 90%-range, has a private driveway and plaza and 85% of the apartments have balconies.
Morningstar says that the building presents a "unique and very rare opportunity to acquire a 'core' apartment building in Manhattan, the most dynamic residential rental market in the country. The stability of the property's revenue streams can be further enhanced through the execution of a number of ascertainable value-add strategies."
Barbara Denham, research manager and economist for Eastern Consolidated's New York City operations, who is not involved in the marketing efforts, tells GlobeSt.com that Riverbank West follows a strong trend of new construction in the West 40s and 30s. "That immediate area is desirable due to its proximity to midtown, but these West 40s properties are also marketed on the hope of an extended No. 7 subway line and the future plans for Hudson Yards." She continues that "to this extent, the developers are putting the horse before the cart but with enough of a critical mass--and the neighborhood is approaching that critical mass level--the City will be forced to extend the No. 7 line assuming residents will create an outcry if they do not."
Denham continues that "one of the programs the City discussed to finance the No. 7 train was tax-incremental financing. TIF's suggest that the tax revenues generated by the ancillary development surrounding a project will or should pay for the project itself. The abundance of new housing suggests that the TIF's are already at work." Another reason why developers have focused on this neighborhood is because it serves as one of the last frontiers for new development in Manhattan, Denham says.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
