The Real Deal New York

Anbau nabs three East Village rental buildings for $58M

Ground-up developer makes rare value-add purchase

April 01, 2016 01:35PM
By Katherine Clarke

anbau final

Anbau’s Barbara van Beuren and the East 3rd Street properties

Investment fund GRJ sold a package of three East Village rental buildings at 50-58 East 3rd Street to developer Anbau Enterprises for $58 million, four years after buying them for $23.5 million.

The properties, which collectively span 52,500 square feet, closed Friday for $1,105 per square foot.

The deal marks the first purchase of an income-producing asset for Anbau, which is best known for its ground-up projects. Arvind Bajaj, chief investment officer for Anbau, told The Real Deal that the company’s move into income-producing assets was not a sign of limpness in the condominium market but simply a bet on a neighborhood they believe is good value.

“We want to augment our growing in-house condominium business by investing in New York City markets that have long-term growth potential – the East Village certainly fits the bill,” said Anbau managing director Barbara van Beuren.

Peter Von Der Ahe and Joe Koicim

Peter Von Der Ahe and Joe Koicim

GJR, founded by brothers Graham and Gregory Jones, gave the properties a major capital upgrade over the past three years. About 25 percent of the 71 apartments are still rent-stabilized units, Koicim said.

Peter Von Der Ahe, Joseph Koicim and David Lloyd of Marcus & Millichap brokered the transaction.

Anbau, which bought the property at a 5 percent cap rate, recently filed plans to build a two-pronged structure rising up to 24 stories at 39 West 23rd Street in the Flatiron District.

MENU