East Harlem Multifamily Development Fetches $28 Million
By Abigail Nehring October 19, 2023 10:42 am
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GO-RE Partners has picked up a pair of multifamily buildings in East Harlem from Greystone Development for $28.2 million, Commercial Observer has learned.
The development known as Harlem 125, at 69 East 125th Street and 58 East 126th Street, contains 75 apartments, with a mix of market-rate and income-restricted residential units, according to Ariel Property Advisors, which brokered the deal. It will receive a 421a tax abatement until 2043.
Greystone purchased the parcels in a bankruptcy auction in 2014 for $11.5 million and started construction on two new apartment buildings, the 12-story 69 East 125th and the six-story 58 East 126th, which finished in 2017, according to The Real Deal and brokers on the deal.
JPMorgan Chase (JPM) provided $16.9 million in financing for the purchase, according to GO-RE co-founder Doron Greenberg.
Greenberg said the quality of the construction and the location made it a good fit for GO-RE, which started buying properties in 2022 with a long-term investment strategy.
Ariel Property Advisors’ Victor Sozio, Shimon Shkury, Mark Anderson, Gabriel Elyaszadeh and Michael Tortorici brokered the deal.
Greystone tried to sell the property last year but failed to find a buyer. Sozio said Greystone reached out to Ariel this year hoping the firm could help find a fresh approach.
“We were able to build some momentum right off the bat,” Sozio said. “And I think we got some pretty good traction early in the process, even though it was a turbulent and volatile time.”
A spokesperson for Greystone did not respond to a request for comment.
Abigail Nehring can be reached at anehring@commercialobserver.com.
