RFR Buys Manhattan Asset for $123M

ASB Real Estate Investments sold the historic building at 875 Washington St. in the Meatpacking District on behalf of its Allegiance Real Estate Fund.
875 Washington St. Image courtesy of ASB Real Estate Investments

Aby Rosen’s RFR Holding has followed up its landmark acquisition of Manhattan’s Chrysler Building by snapping up 875 Washington St., a historic office and retail property in the Meatpacking District for $129.5 million. ASB Real Estate Investments announced that it sold the asset on behalf of its Allegiance Real Estate Fund, a core investment vehicle.

Built in 1900, the five-story, 70,766-square-foot property occupies the whole block of Washington Street between West 13th and 14th Streets in Greenwich Village. The building is more than 43 percent vacant, according to Yardi Matrix data.

Thor Equities teamed up with the ASB vehicle to buy the property for $96.5 million in 2013. The seller was The Yucaipa Cos., the parent company of one of the building’s tenants, clothing retailer Scoop NYC, which has since gone under.

Thor Equities then sold its 40 percent stake to Allegiance Real Estate Fund in 2017, in a deal that valued the building at about $130 million, according to a report by Commercial Observer.

“Although we’ve had recent success in executing leases at the property with retail tenants such as Vans, the sale presented an opportunity to reduce our overall urban retail holdings at this point in the real estate cycle, as we focus our acquisition activity on higher-income producing industrial and multifamily investments,” ASB Managing Director & Northeast Region Head Brodie Ruland commented in a prepared statement.

Earlier in April, RFR and partner SIGNA Group closed on their purchase of the Chrysler Building from the government of Abu Dhabi and Tishman Speyer. The duo paid approximately $150 million for the famed art deco tower, according to media reports.