Stone Street sells W. Village building for $25M

Kaye and Morgenstern get best price from Queens investor
By Katherine Clarke | November 07, 2013 05:40PM

Jeffrey Kaye and Robert Morgenstern have sold a multi-family property in the West Village to a Queens-based investor for nearly $24.6 million. The partners disclosed the deal, Done Through Their Stone Street Properties, in an interview today with The Real Deal.

Stone Street acquired the 26,480-square-foot property at 7-11 Cornelia Street as part of a package in 2011 for a combined $32.6 million, records show. The package included a 1,849-square-foot building at 100-102 Christopher Street that Michael Shah’s DelShah Capital bought last month for $27 million.

The Marcus & Millichap team of Peter Von Der Ahe, Joe Koicim and David Lloyd brokered the deal for the Cornelia Street property, near the corner of West 4th Street. The buyer was Rockfarmer Capital, an affiliate of Douglaston Realty Management, which has more than 2,000 units in Queens and Upper Manhattan. The sale was Douglaston’s largest in Manhattan so far. Douglaston did not respond to a request for comment.

The elevator building is fully occupied; 17 of the 47 residential units are rent-regulated. Stone Street renovated some of the market-rate units.

Kaye and Morgenstern told TRD that they began receiving unsolicited offers for the property as they went about refinancing their loan and pulling out their proceeds. They then opted to put the building on the market with Marcus & Millichap.

“There was a feeding frenzy,” Morgenstern said. “We just rode the frenzy.”

The men formed Stone Street in 2011 and had a string of acquisitions in 2012; this year, the firm has not made as many buys.

“We’ve been working very hard on what we did buy in 2012,” Kaye said. “They’re pretty labor intensive, the buildings we bought. We’re doing the right thing by each of them.”