NEW YORK CITY-Chicago-based apartment REIT Equity Residential has acquired a 301-unit luxury rental in Manhattan’s Chelsea neighborhood, GlobeSt.com has confirmed with sellers JD Carlisle LLC and DLJ Real Estate Capital Partners. Under the transaction, Equity purchased the residential portion of the Beatrice, a mixed-use apartment/hotel at 105 W. 29th St., for $280 million.
“We got a very good price,” Jules Demchick, chairman of JD Carlisle, tells GlobeSt.com, noting that the REIT bought up the top 29 floors of the 54-story property. The building also includes the 292-key Eventi Hotel and a 529-space parking garage, but the hotel and parking portions were not part of the sale.
Demchick says the deal was consistent with the company’s strategy of developing class A multifamily, office and retail properties and selling them to high-quality institutional investors. JD Carlisle, which also owns Kips Bay Plaza on Second Avenue and the Cable building at Broadway and Houston Street, is now focusing on its latest construction project at 158 Madison Ave. in Murray Hill, a 320-unit rental tower on 33rd Street. The site is slated for completion in approximately two years, he adds. “Right now we are really focused on Manhattan multifamily,” Demchick says.
Since its rental program began in 2010, the Beatrice rented out within six months of opening and has been nearly 100% occupied, according to a statement from the developer. Building amenities feature a private residents’ lobby, a landscaped plaza and a 3,700-square-foot lounge with a pool table, private seating, fireplace and rooftop terrace. According to the Equity Residential website, rents for studios start at $3,575, one-bedrooms start at $5,140, two-bedrooms start at $7,000 and three-bedrooms from $17,500.
“Residences at the Beatrice are the paragon of luxury living,” says Evan Stein, president of JD Carlisle, in a prepared statement. “They’re everything that Manhattan’s most discerning renters demand, and, because of our team’s tireless dedication to building timeless, elegant and well-thought-out properties, that will be the case for years to come.”
In addition to its latest project at 33rd Street, JD Carlisle and DLJ Real Estate Capital Partners have also developed Morton Square, Cielo, Centria, Gramercy Green and 600 Washington. Over the course of the 12-year partnership, the developers have yielded $1.5 billion in value—and Demchick intends to carry on that tradition. "We are out of the ground builders and developers," he tells GlobeSt.com. "Everything we do starts with a piece of dirt."
A spokesman for Equity Residential did not return a phone call to GlobeSt.com for this article.
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