Mixed-use
July 18, 2008
By: Scott Baltic, Contributing Editor
A partnership including Kent Swig of Swig Equities L.L.C. has sold a pair of pre-war apartment buildings on Manhattan’s Upper West Side to a locally--based operator of residential and mixed-use properties for $61 million, or about $450 a square foot.
Eastern Consolidated both represented the seller and procured the buyer, and also negotiated the financing with iStar Financial on the buyer’s behalf.
The two buildings, at 201 West 92nd (pictured) and 200 West 93rd streets, comprise an entire block front on Amsterdam Ave. and include 134 rental apartments and 11 retail stores totaling more than 10,000 square feet. The apartments are a mix of rent controlled/stabilized and free market, Eastern Consolidated senior director Deborah Gutoff told CPN.
The sale was driven, Gutoff said, by “a lot of differences about how this property should be run” among the owning partners. The sellers had created numerous vacancies in the buildings’ retail spaces (eight of 11 are vacant) with the aim of attracting a larger, national tenant, such as a retailer, bank or restaurant, Gutoff said. The new owner, whose identity was not disclosed, owns about two dozen residential and mixed-use properties in Manhattan, she said, and will probably hold these buildings long term.
The key to the deal, Gutoff said, was the financing, under which the seller’s lender, iStar Financial, agreed to stay on for a few years. The 75 percent loan-to-value, she said, will let the new owner invest in upgrading some of the residential units and possibly combine some into larger units, as well as upgrading the common areas. And because the property includes 125,000 square feet of unused air rights, Gutoff said that penthouses or even an additional floor could be long-term options.
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By: Scott Baltic, Contributing Editor
A partnership including Kent Swig of Swig Equities L.L.C. has sold a pair of pre-war apartment buildings on Manhattan’s Upper West Side to a locally--based operator of residential and mixed-use properties for $61 million, or about $450 a square foot. Eastern Consolidated both represented the seller and procured the buyer, and also negotiated the financing with iStar Financial on the buyer’s behalf.
The two buildings, at 201 West 92nd (pictured) and 200 West 93rd streets, comprise an entire block front on Amsterdam Ave. and include 134 rental apartments and 11 retail stores totaling more than 10,000 square feet. The apartments are a mix of rent controlled/stabilized and free market, Eastern Consolidated senior director Deborah Gutoff told CPN.
The sale was driven, Gutoff said, by “a lot of differences about how this property should be run” among the owning partners. The sellers had created numerous vacancies in the buildings’ retail spaces (eight of 11 are vacant) with the aim of attracting a larger, national tenant, such as a retailer, bank or restaurant, Gutoff said. The new owner, whose identity was not disclosed, owns about two dozen residential and mixed-use properties in Manhattan, she said, and will probably hold these buildings long term.
The key to the deal, Gutoff said, was the financing, under which the seller’s lender, iStar Financial, agreed to stay on for a few years. The 75 percent loan-to-value, she said, will let the new owner invest in upgrading some of the residential units and possibly combine some into larger units, as well as upgrading the common areas. And because the property includes 125,000 square feet of unused air rights, Gutoff said that penthouses or even an additional floor could be long-term options.
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