NEW YORK CITY—A baker's dozen of multifamily properties have traded hands in Upper Manhattan for $98 million. The buyer, Rhodium Capital Advisors, has picked up a total of 361 apartments in Harlem and Washington Heights.
The 13 properties also include 17 retail stores and one cellular antenna. The seller, Tibeir Trust, was represented in the transaction by Roni Abudi of GFI Realty Services. The buyer also was represented by GFI, with Daniel Shragaei handling the sale.
The majority of the apartments are two-and three-bedroom units, and many of the residences are priced well below market rates, creating the potential for rent growth. Rhodium intends to implement $12 million of capital improvements to the properties, including modernizing common areas, kitchens and appliances.
"With a growing number of young professionals moving into Harlem and Washington Heights, Rhodium was eager to acquire and improve these properties, thereby increasing the amount of quality housing stock in Upper Manhattan," says Shragaei. "The many large units in this portfolio are ideally suited for families seeking apartments in one of Manhattan's most up-and-coming, but affordable areas. Rhodium plans to add value to the properties, vastly improving the resident experience."
"An Israel-based fund that acquired the properties over a long period of time, Tibeir decided to divest of this well-located portfolio and return money to its investors," Abudi says. "While the properties had previously experienced somewhat of a rough period, Park Avenue Management recently worked with Tibeir to stabilize the properties, making cosmetic improvements to the buildings and reducing utility costs."
Of the 13 properties, the sale of eight of them has closed, with the remaining five set to close in the first quarter of this year. The transaction spotlights Rhodium's continued confidence in the strength of the multifamily market in Upper Manhattan, where Shragaei last month arranged the buyer's acquisition of an independent six-building apartment portfolio.
GFI Realty is active across New York City. Recent transactions include the $20-million sale of 259 W. 34th St. in Midtown, a restaurant that will be converted to hospitality use; and the $15-million acquisition of 415 Washington Ave., an apartment building in Brooklyn's Clinton Hill section.
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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.
