NEW YORK CITY–The Orbach Group, an owner, developer, and manager of multifamily properties on the east coast, has acquired a three-building portfolio on the Upper West Side, the company announced Friday. The approximately $70 million purchase added 178 high-end rental units to Orbach's portfolio.
The seller, Dermot Co., was represented in the transaction by HFF senior managing directors Andrew Scandalios and Jose Cruz, as well as managing directors Jeff Julien and Kevin O'Hearn. Orbach was represented by Meyer Orbach, president, in the deal.
With the acquisitions, the company now owns and manages approximately 700 units in roughly a five-block radius on Manhattan's Upper West Side, according to the announcement.
Orbach feels particularly comfortable adding to its holdings in this area because of its existing foothold, Meyer Orbach tells GlobeSt.com. “We own 31 buildings in a five block radius so we have economies of scale and we know the area, we've been there for four years now.”
The company is bullish on multifamily, Orbach adds, because of the importance of housing. “It's safer at the end of the day,” he says. “Everyone needs a home, they don't necessarily need an office. Plus, multifamily is our specialty, we own 5,000 units in New York, New Jersey and Pennsylvania.
The three newly acquired Upper West Side apartment buildings—210, 220, and 230 W. 107th St.—are between Amsterdam Avenue and Broadway, and include a mix of 1BR, 2 BR, and 3BR units. Market rents will range from $2,400 to $5,000 a month.
“Manhattan's Upper West Side is a vibrant community with high-quality, well-located rental units at a premium,” says Meyer Orbach in the announcement. “These three properties are excellent additions to our portfolio, which we are growing through smart, strategic acquisitions. As with our existing assets, we expect that these new acquisitions will deliver a healthy, long-term return on our investment.”
Orbach also noted in the release that the developer has plans for a capital improvement program, including common area upgrades, and renovations of individual units, as needed.
The Orbach Group now owns and manages more than 1,000 apartment units throughout New York City.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
