Joel Wiener’s Pinnacle Group picked up 318 rental units in a 19-building East New York residential complex for $53 million from a partnership between Taconic Investment Partners and Ares Management.
The units are located in MeadowWood at Gateway, a former Mitchell-Lama development, and are currently rent-stabilized, the Wall Street Journal reported. However, Pinnacle Group is known for converting rent-stabilized units to market-rate.
Taconic and Ares purchased 983 of the total 1,152 units in the complex in 2006 for $90 million and have since sold the rest, Peter Febo, chief operating officer of Taconic, told the newspaper.
Under their ownership, some of the units were converted to condominiums, but Febo said that the 318 units Pinnacle is buying will remain rentals for a longer period of time.
Pinnacle and Plymouth Group are partnering to develop a Bronx site they purchased recently for $15 million. In January, Pinnacle bought out its partner in an eight-building Manhattan and Brooklyn rental portfolio for $32 million. [WSJ] — Tess Hofmann