Washington Heights MXD Portfolio Sold

The nine Washington Heights buildings, such as this one, that were bought mostly are on St. Nicholas Ave.

NEW YORK CITY—A portfolio of nine mixed-use elevator buildings totaling 487,700 square feet has traded hands in Washington Heights. The package sold for $165 million. Eastern Consolidated senior director and principal Marcia Rose Yawitz and executive managing director and principal Ron Solarz represented the sellers, Intervest Development Corp., which owned and managed the portfolio for approximately 30 years. Yawitz and Solarz also procured the buyer, WHP. Wade Hazelton served as the financial analyst for the offering. The buyer is a corporation outside of NYC—made up of a consortium of private investors—that bought the buildings over a 30 year period. The buildings in the portfolio are located on major corridors between West 164th Street and West 192nd Streets and consist of 413 apartments—of which about 70% contain two or more bedrooms—48 street level retail stores, two professional offices and one rooftop antenna. Eight of the nine buildings are on prominent corners and 383 of the residential units are rent stabilized while 25 are rent controlled and five are free market, GlobeSt.com has learned. Average rent for the free market apartments is $2639; for rent stabilized, $1244 and for rent controlled, $378. “As values in West Harlem and Hamilton Heights have increased exponentially, active real estate investors are seeking properties with upside in Washington Heights,” says Yawitz. “Renters priced out of other areas also are attracted to the area because of its abundance of large, pre-war apartments like those in this portfolio, which are ideal for both families and shares.” Solarz continues, “This is an exciting package. The buyer saw a rare opportunity to acquire a prime, mixed-use Washington Heights portfolio that offers tremendous upside value on the residential and retail units, as the rents are far below market. All but one property in the package is a corner building with ground floor retail.” The neighborhood offers transportation on the 1, A, C, and D subway lines that run to Midtown in less than 25 minutes. In addition, the Port Authority and a private developer are renovating the George Washington Bridge Bus Station, which is expected to enhance property values in the area, especially the retail. In 2014, close to five million passengers on 337,000 bus trips passed through the station, which is located between 178th and 179th Streets and Fort Washington and Wadsworth Avenues. Other neighborhood assets include Yeshiva University, the Cloisters, Fort Tryon Park, Columbia University Medical Center, New York Presbyterian Hospital and the Highbridge Recreation Center.