Trion looks to sell five-building Upper Manhattan portfolio

126K sf package has 111 rental apartments

New York /
Mar.March 02, 2017 12:20 PM

Carmelo Milio’s Trion Real Estate Management is looking to sell a five-building Upper Manhattan multifamily portfolio, sources told The Real Deal.

The 126,000-square-foot package holds 111 rental units and 17 retail spaces. Sources familiar with the buildings estimated they would fetch as much as $80 million, on par with a low-4 cap rate.

Trion has not owned them for long. The Yonkers-based investment firm bought the buildings in two separate deals in 2015 and 2016, for a combined $52.7 million. The firm bought the six-story, 52-unit building at 2143 Adam Clayton Powell Jr. Boulevard in Harlem for $21.5 million and the four others at 554-558 and 565 West 181st Street in Washington Heights for $31.2 million.

The buildings have a mix of free-market and rent-stabilized units, though the Harlem building is 54 percent free-market, said Trion’s Louis Pfaff, who led the acquisition. Since the acquisitions, Trion brought both the apartments and retail spaces to full occupancy, Pfaff added.

“We enhanced the properties by raising the rent roll and making capital improvements throughout,” Pfaff said.

Ackman-Ziff Real Estate’s Jason Meister, Marion Jones and Alan Goodkin, who are marketing the portfolio as a value-add opportunity, declined to comment. Meister and Jones were recently promoted to managing directors at the firm, which is looking to ramp up its investment-sales practice.

The portfolio’s in-place net operating income is $2.96 million, marketing materials show. More than 30 percent of the stabilized units at the Washington Heights building and 15 percent of those at the Harlem property can be converted over the next few years, according to the documents.

If the buildings were to sell for $80 million, it would mark a serious price appreciation – nearly 150 percent – in just five years. Treetop Development, which later sold the Harlem building to Trion, paid $8.7 million for it in 2012. Crest Realties and Guardian Realty Management, which later sold the Washington Heights properties to Trion, paid $23.5 million for them in 2014.

The Upper Manhattan multifamily market saw a big jump in 2016, with dollar volume up by 42 percent year-over-year to $2.8 billion.


Related Articles

arrow_forward_ios
M&T CFO Darren King (The Org and iStock)
Real estate lender’s bleak outlook and earnings decline perplexes analysts
Real estate lender’s bleak outlook and earnings decline perplexes analysts
Grocery store signs lease for 14,000 square feet at 725-733 Amsterdam (Wikipedia, Google Maps, iStock)
Key Food to open 14K sf shop on the UWS
Key Food to open 14K sf shop on the UWS
(Facebook/XS Ranch, iStock)
XS Ranch in Texas finally finds a buyer after emerging from bankruptcy
XS Ranch in Texas finally finds a buyer after emerging from bankruptcy
(Photo-illustration by Kevin Cifuentes)
LA industrial developers turn to office conversions
LA industrial developers turn to office conversions
Prologis CEO Hamid Moghadam and CFO Tom Olinger (Prologis, iStock)
Supply-chain crisis likely to persist well beyond 2022: Prologis
Supply-chain crisis likely to persist well beyond 2022: Prologis
Uptown ATX (Brandywine Realty Trust)
$24M metro station for $3B Texas development breaks ground
$24M metro station for $3B Texas development breaks ground
“WeCrashed,” starring Jared Leto as Adam Neumann, is set to premiere on March 18 (Wikipedia, Getty Images)
Watch: Apple drops first trailer for WeWork series starring Jared Leto
Watch: Apple drops first trailer for WeWork series starring Jared Leto
Michael Gronager, chief executive officer, Chainalysis, in front of 114 Fifth Avenue (Chainalysis, LoopNet/Illustration by Steven Dilakian for The Real Deal)
Crypto data firm doubles space at Flatiron office
Crypto data firm doubles space at Flatiron office
arrow_forward_ios

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

Loading...