Related Sells Chelsea Multifamily Asset to Pacific Urban, CalPERS for More Than $180M
By Cathy Cunningham August 8, 2023 5:06 pm
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Related Companies is saying sayonara to The Sierra, the firm’s luxury multifamily building at 130 West 15th Street.
The firm just sold the 213-unit property to Pacific Urban Investors and the California Public Employees Retirement System (CalPERS) for “north of $180 million,” sources familiar with the trade told Commercial Observer.
Completed in 2002, The Sierra spans 14 floors across 147,000 square feet. Designed by Costas Kondylis and Partners, its amenities include bike storage, a tech and business lounge and a landscaped rooftop sun terrace.
Related was approached off-market and decided to make an opportunistic sale, sources said —one that’s a now a strong endorsement for Manhattan’s multifamily market.
The deal is closing today, sources said, and was negotiated by Newmark’s Doug Harmon, Marcella Fasulo, Avery Silverstein, Adam Doneger, Adam Spies and Josh King.
Related may be parting ways with one multifamily property but it’s busy readying another. The firm recently snapped up Harborside 4, a land parcel on the Hudson River waterfront in Jersey City, N.J., for $58 million with plans for a new rental building at the site. The same Newmark team also led that transaction.
And both CalPERS and Pacific Urban have been on the hunt for multifamily deals this year. At the end of 2022, the retirement fund allocated $821 million to Calfiornia-based Pacific Urban to invest in multifamily properties around the country, The Registry reported.
Pacific Urban currently has a 20,000-unit multifamily portfolio spread out across 15 states and valued at $8.6 billion, including a 328-unit community in Lyndhurst, N.J. it picked up in 2021, Real Estate Weekly reported.
Spokespeople for CalPERS and Pacific Urban did not immediately respond to requests for comment. Related and Newmark officials declined to comment.
With additional reporting from Nicholas Rizzi.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com.
