Stonehenge51.

NEW YORK CITY- A venture comprised of real estate firm Stonehenge NYC, retired Major League Baseball player Alex Rodriguez A-Rod Corp and real estate agency the Modlin Group have announced the acquisition of 340 East 51st, a 114-unit residential apartment building in Midtown East. Savills brokered the property sale, which sold for $66 million or $707 per square foot.

The property, formerly known as the Allen House, was constructed in 1965. At the time, the London Family who owned the property built it 14 stories tall and have since rebranded the property as Stonehenge 51. 

Stonehenge NYC will manage the business plan and budget for Stonehenge 51.  Part of the investment strategy includes a new branded concept such as the Stonehenge Reserve, which will offer tenants the flexibility of leasing fair market units for terms of 6-months or more or the leasing of fully furnished apartments. David Krantz and Paul Leibowitz of Savills broked the transaction. 

"We have noticed a strong trend, particularly among millennials, of a need for more flexible lease lengths and furnished options. Due to this, we are delighted to introduce our new Stonehenge Reserve concept at Stonehenge 51.  Should they desire – a tenant can simply move in with nothing but their clothing," said Ofer Yardeni, chairman and CEO of Stonehenge NYC, in a prepared statement. "I am thrilled to be doing our first deal with Alex and Adam and also introducing Stonehenge Reserve. This will be the first of many deals together, as we continue to be bullish on a market that has consistently provided great investment opportunities for rental apartments."

The investment strategy for the property was complimentary to the A-Rod Corp portfolio, said Rodriguez, who has been a real estate investor for more than 20 years. "With Adam [of the Modlin Group] and Ofer as my partners, we have an all-star team that has enjoyed an enviable track record in owning and managing Manhattan rental apartments for more than two decades."

Adam Modlin heads the Modlin Group and said the venture's formation of Stonehenge 51 will enjoy the dense location in Midtown East, which is expected to maintain high occupancy levels. "With tech companies such as Google expanding its footprint in NYC and Facebook taking 1.5 million square feet in NYC, there is a growing demand for quality rental apartments," he said. 

The new joint venture is a new step for Rodriguez, who has typically invested in a range of multifamily assets. 

According to a recent GlobeSt.com article, Real estate has been a mainstay of his business, which has invested about $400 million of equity in buying multifamily units in secondary markets through Fannie Mae. "They are nothing fancy, but our returns to our LPs have been north of 30%." But they haven't been all wins.

One "strike out" he mentioned includes a 500-unit portfolio out of Tampa at $60,000 a door that overnight was worth about $42,000 per door. "We ended up cutting a deal with the bank, but I had people at the table with me with experience and a great track record."

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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.

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