Manhattan Apartment Property Fetches $280M
JD Carlisle L.L.C. and DLJ Real Estate Capital Partners L.L.C. have just pocketed $280 million on the disposition of The Beatrice, the partners’ 301-unit luxury apartment property in New York City’s Chelsea neighborhood. Equity Residential picked up the apartment asset, which consists of the top 29 floors of the 54-story, mixed-use building at 105 W. 29th St.
Equity Residential will have no worries on the leasing front. The Beatrice, developed above the 292-room Eventi Hotel by JD Carlisle and DLJ RECP, has been near maximum capacity since its rental program kicked off in the summer of 2010. Luxury rental accommodations are highly coveted in Manhattan and landlords are reaping the benefits. “The market is very, very busy,” Paul Zweben, an executive vice president with real estate brokerage firm Prudential Douglas Elliman, told Commercial Property Executive. “It’s very tight and land and landlords are not giving anything: no concessions. If we were having this conversation two years ago, I’d be saying they’re giving you everything.”
And investors can’t get enough of the market. Buyers are flocking to high-quality properties and the strong demand coupled with low supply has resulted in a 30 percent year-over-year increase in price, according to a first quarter report by Marcus & Millichap Real Estate Investment Services. “New York City Class-A multi-family is a highly sought-after asset class delivering solid returns to institutional investors,” Jules Demchick, chairman of JD Carlisle, noted in a prepared statement.
Big-ticket apartment transactions this year include Wafra Investment Advisory Group’s purchase of the 144-residence 2 Cooper Square for approximately $134.1 million, or $930,000 per unit.