NEW YORK CITY—Making its largest purchase in Manhattan to date, Emerald Equity Group has acquired the former Dawnay, Day Portfolio for nearly $358 million. Sold by Fairstead Capital and E+M Associates, the East Harlem and Manhattan portfolio is comprised of 47 buildings, totaling 712,571 square feet and 1,181 units.
A team led by Ariel Property Advisors' Victor Sozio, Shimon Shkury and Michael A. Tortorici represented the sellers and procured the buyer. Mitchell Taras of the Sadis & Goldberg provided legal representation to the seller while Jeffrey Zwick of Jeffrey Zwick & Associates provided legal representation to the buyer.
“East Harlem is about to grow exponentially,” declares Shimon Shkury, founder and president of Ariel Property Advisors to GlobeSt.com. “The locations in this portfolio all are an extension of the Upper East Side, where the Second Ave. subway and upcoming Cornell-Technion Institute of Technology on neighboring Roosevelt Island will allow for rent growth.”
In fact, he asserts, “We see big potential rent growth there, almost regardless of market conditions.”
Adds Sozio, EVP-brokerage services at Ariel, “Emerald has been active in the Bronx, it picked up a $90 million portfolio, and a $130 million one. It has properties in Manhattan too but with this purchase—its largest in Manhattan—the company probably has more than 3,000 units.”
As for the seller, Sozio notes, “Fairstead and E+M purchased this portfolio as a distressed asset and felt they could achieve a good valuation in the current market. They had a lot of equity in the portfolio.”
Fairstead, a locally-based investor and manager of multifamily property, acquired the portfolio with E&M from a special servicer in 2013 for an undisclosed sum. Previously the properties had been owned by Dawnay Day Group, a now-defunct U.K. investment firm, which bought the portfolio for $225 million in 2007.
A team led by Ariel Property Advisors' Victor Sozio, Shimon Shkury and Michael A. Tortorici represented the sellers and procured the buyer. Mitchell Taras of the
“East Harlem is about to grow exponentially,” declares Shimon Shkury, founder and president of Ariel Property Advisors to GlobeSt.com. “The locations in this portfolio all are an extension of the Upper East Side, where the Second Ave. subway and upcoming Cornell-Technion Institute of Technology on neighboring Roosevelt Island will allow for rent growth.”
In fact, he asserts, “We see big potential rent growth there, almost regardless of market conditions.”
Adds Sozio, EVP-brokerage services at Ariel, “Emerald has been active in the Bronx, it picked up a $90 million portfolio, and a $130 million one. It has properties in Manhattan too but with this purchase—its largest in Manhattan—the company probably has more than 3,000 units.”
As for the seller, Sozio notes, “Fairstead and E+M purchased this portfolio as a distressed asset and felt they could achieve a good valuation in the current market. They had a lot of equity in the portfolio.”
Fairstead, a locally-based investor and manager of multifamily property, acquired the portfolio with E&M from a special servicer in 2013 for an undisclosed sum. Previously the properties had been owned by Dawnay Day Group, a now-defunct U.K. investment firm, which bought the portfolio for $225 million in 2007.
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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.
