Benchmark Real Estate Purchases Apartment Building at 425 Third Avenue
Benchmark Real Estate, which focuses on acquiring and improving multifamily properties, has just closed on the purchase of an apartment building at 425 Third Avenue in Kips Bay for $44 million.
Jordan Vogel, co-founder and managing member of the company, confirmed the deal to The Mortgage Observer.
The company partially financed the purchase with a $36 million loan provided by Ares Commercial Real Estate.
The nine-story building is located between 29th and 30th Streets. It has 101 apartments at a total of about 61,000 square feet and three commercial units at about 5,000 square feet.
“We bought the building because we thought there was a disconnection between the current rents and the market rents,” said Mr. Vogel.
According to Ares, approximately $5 million in loan proceeds are expected to be drawn down over time and used primarily for renovations of the building.
“We are pleased to provide the sponsors with a senior mortgage for the acquisition and value-added renovation of this quality asset in a market with strong fundamentals,” Bruce Cohen, president and chief operating officer of Ares, said in a prepared statement. “Due to our flexible capital solutions offered through our direct originations platform, we expect to continue to produce attractive risk-adjusted returns on our loans, especially given the growing capital needs of qualified real estate owners and sponsors.”