NEW YORK CITY-Furthering its expansion into the New York City market, Colorado-based apartment operator and investment firm Archstone has acquired Eastbridge Landing, a 209-unit, 22-story rental tower from sellers Madison International Realty and RFR Holding through an Archstone sponsored partnership, the company unveiled Tuesday morning. The site, located at 377 E. 33rd St., sold for a purchase price of $131 million.
The acquisition comes on the heels of Equity LifeStyle Properties Inc. trying to buy a 26.5% interest in Archstone for $1.3 billion, as GlobeSt.com previously reported. The deal now brings Archstone’s total apartment portfolio in the New York-metropolitan area to 14 properties. It currently owns and manages 10 rental towers in Manhattan, one in Brooklyn and one on Long Island. “It will increase our presence in New York, one of our core markets,” says R. Scot Sellers, CEO of Archstone, in a statement. “We are extremely excited about being back in the business of acquiring incredible apartment communities in the best neighborhoods in the country.”
According to spokeswoman for Madison International Realty, the timing was “appropriate” for Madison and RFR to complete the transaction because of the “favorable investment climate” for rental properties in New York City. Madison originally acquired an interest in Eastbridge from RFR and its partners in 2007. RFR retained an ownership stake and has managed the asset since that time.
The transaction, however, contained some nuances. The ownership was not a seller entering the market, but received a great deal of investor interest from several interested parties. “There was no shortage of capital opportunities around this asset, but Archstone has such a terrific track record and reputation that we felt compelled to explore a transaction with them,” says Dave Karson, managing director of Cushman & Wakefield Sonnenblick Goldman, which served as exclusive advisor to the sellers. Karson led the team on the transaction with Helen Hwang and Nat Rockett from investment sales and Kate Pelet, Mark Ehlinger and Michael Henry. “We quickly became convinced that Archstone was the right execution, and we’re all very pleased with the result."
The property, which buffers the Murray Hill neighborhood, is located in close proximity to large employers such as the New York University Langone Medical Center and the United Nations. Rents range from $2,500 for studios and up to $5,400 for two-bedroom units, according to StreetEasy.com. It is 95% occupied, according to Real Capital Analytics.
RCA data shows that Anglo Irish Bank Corp. was assigned to refinance the first mortgage on the property for $100 million in December 2006. Calls requesting the current financial status of the building were not returned.
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