Fetner, PGIM Buy Student Housing From Columbia for $65M

Fetner Properties and PGIM have closed on a $65 million sale-leaseback deal for 3260 Henry Hudson Parkway in the Bronx’s Riverdale neighborhood, Commercial Observer has learned.

Columbia University sold the 126-unit residential property known as Arbor to PGIM and Hal Fetner’s firm for a total capitalization of $73 million after deeming it was no longer a strategic asset for the school, according to sources familiar with the deal.

The buyers secured a $47.6 million acquisition and bridge loan toward the purchase, upgrades and stabilization of the nine-story asset, sources said. When Columbia’s short-term lease turns over, the building will be converted from student housing to residential use, according to one source.

Newmark’s Adam Spies, Eric Roth, Brett Siegel and Tyler Signora negotiated the sale, and a Newmark team of Jordan Roeschlaub and Max Ralby handled the financing.

It’s unclear who the lenders are.

Fetner, PGIM and Columbia did not respond to a request for comment, while Newmark declined to comment.

Columbia bought the then-new property in 2008 for $67.6 million from L+M Development Partners, which originally built it as condominiums. At the time, four-bedroom units were listed for around $1.36 million, according to property records and the Riverdale Press.

According to Columbia’s website, Arbor is used by eligible students, researchers and faculty who live in private or shared apartments featuring in-unit washers and dryers. Amenities include a gym, a playroom, bike storage, on-site parking, a roof deck and shuttle service to campus.

Mark Hallum can be reached at mhallum@commercialobserver.com.