599 Lexington Avenue, 36th floor New York, NY 10022 (646) 795-3160
Stone Street Properties
Stone Street Properties is a real estate investment firm co-founded in 2011 by Jeffrey Kaye and Robert Morgenstern. Kaye had worked at the Gotham Organization, a real estate development and construction firm. Morgenstern had been a residential broker at Kleier Residential, formerly known as Gumley Haft Kleier. The co-founders named the firm after a street in the Financial District, where restaurants let patrons dine alfresco. In 2011, Stone Street, in partnership with Rockwood Capital, acquired a portfolio of 144,000 square feet for roughly $99 million from Icon Realty Management. The firm tends to gut renovate the buildings it acquires and to reconfigure the units inside them. In 2013, Kaye and Morgenstern sold a 21,849-square-foot building at 100-102 Christopher Street to rival developer DelShah Capital for $27 million, as well as a 26,480-square-foot property at 7-11 Cornelia Street to a Queens-based investor for nearly $24.6 million. In December 2014, the firm and Meadow Partners sold five connected walk-up buildings on Sohos Elizabeth Street to an unidentified buyer for $61 million. MK
The package of 14 Manhattan buildings and two Brooklyn properties sold for $73 million, or $514 per square foot. The Manhattan properties are located primarily in Murray Hill, on the Upper East Side and in the East Village. They include 101 MacDougal Street, 104 East 7th Street, 438-440 East 13th Street, 236-236 East 33rd Street, 410 East 64th Street, 319 East 78th Street, 233 East 82nd Street, 310 East 83rd Street, 325 East 83rd Street and 504 East 88th Street. The Brooklyn properties are located at 354-356 State Street in Downtown Brooklyn.
The package of buildings at 100-102 Christopher Street, 7 Cornelia Street and 11 Cornelia Street sold for $32.6 million, or $362,222 per unit. The price represents a gross rent multiple of 12.1 and a capitalization rate of 6 percent.
The package of five rental buildings sold for $90 million. The properties are located at 176 East 3rd Street, 420 East 66th Street, 404 East 88th Street, 336 East 81st Street and 344 East 85th Street; the buildings have been renamed the Jesse, the Chase, the Hudson, the Lily and the Emma, respectively.