NEW YORK CITY – Penn South Capital, a subsidiary of RAP Equities, a real estate investment management firm, has acquired a $37.5 million portfolio that includes 39 Clarkson St., a 40,000-square-foot, mixed-use office development and a pair of multifamily buildings on the Lower East Side.
RAP Equities' acquisition of 39 Clarkson St. is a new play to diversify its portfolio and enter the boutique office sector in the Hudson Square submarket, which has grown into a media and tech hub with Google's new campus and Disney's new headquarters. The building is currently a manufacturing property that will be redeveloped into a boutique office building. The firm has already secured a high-end restaurant for the ground-floor retail of its building.
"We're seeing prices that are starting to make sense again. While cap rates have widened, interest rates remain at historic lows which are creating a very favorable cash flow play without having to drive any buyouts," Parag Sawhney, managing partner of Penn South Capital, said in a prepared statement. "We are confident that these projects will create value for the community, the business ecosystem, and for our partners."
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
