Stonehenge NYC Lands $80M for UES Apartment Building Purchase
By Celia Young April 20, 2023 11:56 am
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Stonehenge NYC has scored about $80 million in acquisition financing for its purchase of the 32-story Upper East Side apartment tower at 408 East 92nd Street, according to a source with knowledge of the deal.
Mesa West Capital provided the loan to help fund Stonehenge’s $114 million purchase of the 196-unit tower from UBS, according to the source.
The sale went into contract earlier this year and closed Wednesday, the source said.
The 194,000-square-foot tower, called RiverEast, received a benefit from the state’s expired 421a program that required it to keep 20 percent of its apartments rent-stabilized, but that ends in 2026. Stonehenge can either convert the units to market-rate or keep the tax benefit for another 15 years, provided it bumps up the affordability component to 25 percent, The Real Deal reported.
The source said Stonehenge hasn’t decided if it will keep the building partially rent-stabilized. Spokespeople for Stonehenge and Mesa West did not immediately respond to requests for comment. UBS declined to comment.
RiverEast has studios, one-bedroom and two-bedroom apartments that rent for as much as $6,918 a month for a two-bedroom unit, according to StreetEasy. But for its income-restricted units, two-bedroom homes are capped at $931 a month for households bringing in no more than $51,560 per year, according to the New York City Department of Housing Preservation and Development.
UBS first bought the property for $94.8 million in 2006 and hoped to score between $120 million and $125 million when it began marketing the building for sale last year, TRD reported.
Eastdil Secured’s Grant Frankel and Ethan Pond arranged the financing while Gary Phillips, Will Silverman and Daniel Parker, also of Eastdil, brokered the sale. Eastdil did not immediately respond to a request for comment.
Celia Young can be reached at cyoung@commercialobserver.com.
