Equity Residential, the largest U.S. publicly traded apartment owner, is close to a deal to buy the Beatrice luxury tower in Manhattan’s Chelsea neighborhood for $280 million, expanding in New York as rents jump.
The sale of the 302-unit property on 29th Street and Sixth Avenue, probably will be completed this week, said a person with knowledge of the transaction, who asked not to be named because the details are private. The seller is JD Carlisle Development Corp., the person said. The apartments are atop the Eventi hotel, which isn’t included in the deal.
“Beatrice reflects your priorities. Your dreams,” reads the website for the property, where apartments start on the 26th floor of the 53-story tower. “Breathtaking views through wall- to-wall windows provide a dramatic backdrop for every spacious residence, with ceiling heights of 9 feet to over 12 feet.”
Marty McKenna, a spokesman for Chicago-based Equity Residential (EQR) (EQR), said the company is in contract negotiations for the building and declined to comment further. Evan Stein, president of JD Carlisle, and Jules Demchick, the company’s chairman, didn’t return voice mail messages.
Record PricesInvestor demand for apartment buildings in Manhattan has sent prices to record highs, reducing yields on the properties to the lowest in more than six years. The capitalization rate, a measure of investment return that declines as prices rise, averaged 4.4 percent for Manhattan multifamily buildings in first three months of the year, the lowest since the third quarter of 2005, according to New York-based data firm Real Capital Analytics Inc.
At $280 million, the purchase of the Beatrice would be second-largest Manhattan apartment deal this year, according to Ben Thypin, director of market analysis at Real Capital. Only the $630 million acquisition of the five-building Columbus Square complex on the Upper West Side by UDR Inc. (UDR) (UDR) and MetLife Inc. (MET) (MET) was bigger.
Buyers are attracted to buildings such as the Beatrice, which was completed in 2010, because they have lower operating expenses and tend to attract wealthier tenants, he said.
“Institutional investors are comfortable paying a premium right now because of the confidence they have that rents will increase” at newly constructed properties, Thypin said.
Read More: http://www.businessweek.com/news/2012-06-18/equity-residential-said-to-buy-manhattan-s-beatrice-tower
New York real estate investor Kent Swig obtained $161.5 million of loans to refinance debt on 110 William St., a lower
Manhattan office tower.
Swig, president of Swig Equities LLC, obtained a $141.5 million mortgage from UBS AG (UBSN)and Barclays Plc (BARC) that will be packaged into bonds, he said in a statement. He received the loan with partner Silverpeak Real Estate Partners, which manages assets for a member of Dubai Investment Group. Pearlmark Real Estate Partners LLC provided a $20 million mezzanine loan as part of the transaction.
The structure of the new financing for 110 William St. suggests that lenders are reluctant to provide as much debt as they had before the crisis, said Ben Thypin, director of market analysis at Real Capital.
Read More: http://www.bloomberg.com/news/2012-06-15/swig-refinances-manhattan-tower-with-barclays-ubs-loan.html
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.