British unload Upper East Side apartment buildings
British investor Henley Investments has unloaded a pair of Upper East Side apartment buildings it bought before new rent regulations in 2017.
Local investor Aulder Capital bought 409 and 413 East 84th Street, two adjoining buildings in Yorkville (top photo) for $ 21.7 million.
Amit Doshi and Shallini Mehra of Meridian represented both the seller and the buyer.
âThe change in rent laws has caused many landlords to change their investment strategy, but on the other hand, we are also seeing a lot of opportunistic investors entering or doubling their portfolios in New York,â Doshi said.
Henley bought the Upper East Side buildings for $ 21 million and did a renovation that included apartment upgrades as part of a planned push into the New York rental market they billed Henley City Living.
The company also spent $ 23 million to acquire Hayes Court at 33-54 83rd Street in Queens. He also updated this pre-war, eight-building, four-story complex with modern renovations, including stainless steel appliances, subway tile kitchens and bathrooms, and a LATCH door entry. compatible with technology.
The deals were part of a wave of investing activity in 2017, which saw Henley USA spend $ 130 million in the US multifamily market.
In the first half of 2021, the private equity real estate firm announced it had sold five US multi-family assets for a total of $ 225 million, including Arbor Crest in North Carolina, three housing communities in Las Vegas and, most recently, Hillside Village in California.
CEO Ian Rickwood commented: âOur US business has a solid track record of investing in the multi-family asset class and reflects the forward-looking and opportunistic strategy pursued by Henley in the US. As we move forward into 2021, we look forward to continuing our business in the United States and finding new opportunities for our investors. “
409 and 413 East 84th Street have 75 feet of frontage and span a combined area of ââ31,152 s / f. They contain 48 apartments, 58 percent of which are on the free market.
The property gave a four percent cap rate, just under $ 700 per square foot, and a gross rent multiplier of 16.4 times.
According to Mehra, âAulder currently has 2,600 units in the Northeast, Mid-Atlantic and Midwest regions. They believe in the recovery of the New York market and have a long-term investment horizon for these multi-family assets. ”
John Reid, vice president of acquisitions at Aulder, added, âAulder Capital has a long history of investing in New York and remains optimistic about Manhattan’s long-term growth prospects. We are extremely pleased to have had the opportunity to acquire another high quality asset in the Upper East Side. ”
Jones Day attorney Kyle Baltes represented the Henley while Phillip S. Ross represented the buyer.
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