Upper West Side Mixed-Use Property Changes Hands for $120M
An Upper West Side mixed-use residential building has traded hands for the first time since 1985 in a $120 million deal.
A joint venture among Slate Property Group, Avenue Realty Capital (ARC) and KABR Group acquired the 166-unit 600 Columbus Avenue from KB Companies, according to the buyers.
The JV purchased the building — which also has 27,500 square feet of retail and 100 parking spaces — with a $68 million loan from an affiliate of Apollo Global Management (APO). The Real Deal first reported the deal went into contract in February.
“Manhattan has exhibited strong multifamily dynamics over the past 24 months while also remaining one of the most undersupplied housing markets in the nation,” Martin Nussbaum, principal at Slate Property Group, said in a statement. “This combination of factors gives us the confidence to expand our portfolio of long-term, institutional-quality assets in core New York City locations.”
While ground-up development of a property like this isn’t in the cards for many developers in the absence of 421a and harsh interest rates, Udi Kore, managing principal of ARC, said renovating the existing building would be more their speed.
JLL’s Bob Knakal, Jon Hageman, Rob Hinckley, Jeff Julien and Hall Oster brokered the deal.
“This was a great deal for both parties,” Knakal said in a statement. “The sellers were able to monetize the asset in a very challenging market and the buyers were able to pick up a property with significant embedded upside.”
The building stretches a full block along Columbus Avenue from West 89th Street to West 90th Street. The ground-floor retail space is also already leased with tenants such as Ace Hardware, Atmosphere Kitchen & Bath, Round Star Soccer and Columbus Pre-School.
Slate and ARC have partnered on nine other residential acquisitions in the past, all adding up to $450 million in purchases, according to the JV.
Mark Hallum can be reached at firstname.lastname@example.org.