Orbach Group Grabs 178-Unit NYC Apartment Portfolio for $70M
- Mar 18, 2013
Keen on Manhattan’s Upper West Side, The Orbach Group has enhanced its presence in the area with the addition of a three-property apartment portfolio sited along 107th Street. The real estate company purchased the collection of 178 high-end residential units for $70 million from The Dermot Co., which had shelled out $60 million to acquire the assets in 2008.
Commercial real estate services firm HFF marketed the portfolio on behalf of the seller. Encompassing a total of approximately 150,000 square feet, the three six-story multi-family buildings are sandwiched between Amsterdam Ave. and Broadway, carrying the addresses of 210, 220 and 230 West 107th St. In addition to a coveted location, the assets offer a long history of occupancies in the 90-percent range; the portfolio was 92 percent spoken for when Dermot picked it up in 2008, and currently it is 95 percent leased.
“Manhattan’s Upper West Side is a vibrant community with high-quality, well-located rental units at a premium,” Meyer Orbach, president of The Orbach Group, said in a prepared statement. Indeed, there is a great deal of demand in the submarket, but there’s always room for improvement. According to a report by residential brokerage firm Douglas Elliman, the 2.2 percent vacancy rate on the West Side, while certainly admirable, marks a notable increase from the 1.7 percent vacancy rate in 2011.
Still, Manhattan is the strongest apartment market in the country and with the purchase of the 107th St. portfolio, Orbach now owns and manages in excess of 700 units within a three-block radius on the Upper West Side and 1,000 units in New York City.
So, what’s next? “We’re working on acquiring more properties,” Orbach told Commercial Property Executive. In the meantime, the company will add a little more shine to its newly acquired properties through a capital improvement program.