Capital One, NYCB Lend $184M for Greystar’s NYC Apartment Building Buys

The Chelsea at 160 West 24th Street.
The Chelsea at 160 West 24th Street.


 

Charleston, S.C.-based real estate owner Greystar nabbed a total of $184 million from New York Community Bank and Capital One across two loans to fund its recent apartment building purchases in New York City, Commercial Observer has learned.

NYCB provided Greystar with $115 million to finance its buy of The Chelsea, an 18-story apartment complex at 160 West 24th Street at the corner of Seventh Avenue and a connected three-story retail building at 167 West 23rd Street in Manhattan. The firm acquired the two attached Chelsea buildings for $211.3 million from Chicago-based LaSalle Investment Management and both the sale and financing closed on Feb. 25, according to city records made public earlier this month.

The mortgage carries a five-year term with two one-year extension options, Greystar Chief Executive Officer Bob Faith told CO.

“We have borrowed from [NYCB] before and they’re a great lender,” Mr. Faith said. “They have been very good to work with on acquisitions that we’ve done in the Greater New York area before, and we’re very excited about this acquisition. It’s a great location and right in the heart of Chelsea.”

Meridian Capital Group’s Abe Hirsch and Zev Karpel negotiated the financing on behalf of the borrower.

The Chelsea, which last traded hands for $117.4 million in May 2006, contains 204 studios, one- and two-bedroom apartments. The monthly asking rents range from $3,430 for a 523-square-foot studio to $7,291 for a 1,166-square-foot two-bedroom, according to the building’s website.

The company plans on upgrading the building’s lobby, hallways and other common areas, as well as the kitchens and floors in the apartments, Mr. Faith said.

In a separate transaction, Greystar purchased two residential rental developments in Williamsburg, Brooklyn from Adam America Real Estate for $125 million, for which Capital One provided a roughly $68.8 million acquisition loan. The mortgage also carries a five-year term and two one-year extension options.

The two properties, at 247 North 7th Street and 248 North 8th Street, both between Roebling and Havemeyer Streets, were just completed and are currently being leased up, Mr. Faith said.
A spokesman for NYCB declined to comment. A representative for Capital One did not immediately respond to requests for comment.

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