Madison Realty sells Upper Manhattan rental portfolio for $23M

Josh Zegen's firm paid $10.5M for properties in 2012

New York /
Jul.July 17, 2014 01:15 PM

Madison Realty Capital sold a 125-unit Upper Manhattan residential portfolio for $23.4 million, the firm’s co-founder Josh Zegen told The Real Deal. The sale netted the firm more than twice the $10.5 million it paid for the portfolio in 2012.

Zegen declined to disclose the buyer. Sources familiar with the deal said only that it was an Israeli private investor. The properties are 528-538 West 159th Street, 220 West 149th Street and 2546-2548 Adam Clayton Powell Boulevard. In total, the 9 buildings have roughly 88,000 square feet, including two retail stores. About 70 percent of the units are rent-stabilized, and Zegen said that he was seeing an influx of young professionals and Columbia University students into the area.

GFI Realty Services’ Yosef Katz and and Roni Abudi brokered the deal, along with Marcus & Millichap’s Peter Von Der Ahe, Seth Glasser and Scott Edelstein. Von Der Ahe is also marketing a $25 million, 99-unit portfolio on West 145th Street on behalf of Israeli real estate investor Yoram Nissim.

Market-rent one-bedroom units in the portfolio were charging up to $1,400 per month, while two-bedroom units were renting for up to $1,800. Three-bedroom units were going for as much as $2,300 per month.

“We renovated and reconfigured the unit mix to be able to maximize the floor plates,” Zegen said.

An active player in the mid-sized multifamily market, Madison has acquired or is in contract to buy about $200 million worth of property so far this year, Zegen said. The firm is also active in the debt market.

Upper Manhattan was once the stronghold of major institutional capital-backed landlords, but they’ve since given way to a new guard of smaller private investors and high-net worth individuals, as TRD reported.

Related Articles

arrow_forward_ios
GFI and Marx raise north of $60M apiece in Tel Aviv bond offerings
GFI and Marx raise north of $60M apiece in Tel Aviv bond offerings
GFI and Marx raise north of $60M apiece in Tel Aviv bond offerings
A view of the development site with Bears & Eagles Riverfront Stadium and Madison Realty Capital’s Josh Zegen (City of Newark, Wikimedia/buba69)
NJ developer lands $400M apartment loan
NJ developer lands $400M apartment loan
(Photo illustration by The Real Deal)
Hard money, hard decisions: Nonbank lenders face pressure to deal with problem loans
Hard money, hard decisions: Nonbank lenders face pressure to deal with problem loans
From left: Letitia James, Raphael Toledano and Josh Zegen with 223 East 5th Street and 325 East 12th Street (Getty, Google Maps)
Madison Realty Capital to give Toledano tenants $1M in rent credits
Madison Realty Capital to give Toledano tenants $1M in rent credits
Union Crossing at 825 East 141st Street with LibreMax's Greg Lippmann (Union Crossing Bronx; LibreMax)
$78.6M sub-performing loan on Union Crossing up for sale
$78.6M sub-performing loan on Union Crossing up for sale
Ilan Bracha, Haim Binstock and 39 East 72nd Street (Getty, Elliman)
Vanderbilt mansion condo conversion in foreclosure
Vanderbilt mansion condo conversion in foreclosure
GFI Capital CEO Allen Gross and the James Hotel at 22 East 29th Street (Google Maps)
GFI Capital takes majority stake in James Hotel in $110M deal
GFI Capital takes majority stake in James Hotel in $110M deal
Mortgage lenders are beginning to see missed rent payments from office buildings. (Credit: iStock)
Add office tenants to the list of those not paying rent
Add office tenants to the list of those not paying rent
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...