Broad Street, Crow Holdings Spend $85M on 208 NYC Apartment Units
- Apr 19, 2012
By Nicholas Ziegler, News Editor
By acquiring two mid-rise apartment buildings, Broad Street Development has added 208 units to its housing portfolio. The properties, marketed by Holliday Fenolgio Fowler L.P. on behalf of owner GID Investment Advisors, L.L.C., were picked up for $85 million. Broad Street partnered with Crow Holdings on the acquisition.
Raymond Chalme, a principal with Broad Street, called the Gramercy Park neighborhood where the buildings are located “one of Manhattan’s most desirable neighborhoods” with “a very strong rental market.” The two buildings, Gramercy West and Gramercy Central, are located at 210 E. 22nd and 220 E. 22nd Streets, respectively.
The new owner plans a $2 million renovation for the properties, which have already received what the new owner terms “significant” upgrades during the past seven years.
“With the increasing demand for quality housing, especially from the influx of technology employees currently fueling the city’s economy, this type of multi-family investment is extremely desirable in today’s marketplace,” Chalme said.
This acquisition is the second time BSD and Crow Holdings have joined forces to expand their residential footprints in Manhattan. The partnership is also in the planning stages for a new condominium development at 209-219 Sullivan Street.
The Manhattan rental market is predicted to remain one of the country’s most competitive this year, according to a report by Marcus & Millichap Real Estate Investment Services Inc. The increased demand will prompt builders to deliver approximately 6,500 units across the city, but large apartment complexes will likely see their vacancy rates continue to fall, dropping 10 basis points to 2.3 percent. Asking rents are expected to rise 6 percent during the year, reaching $3,107 per month.