Akelius strikes $100M deal in Chelsea

Swedish investor has been primarily focused on BK rentals

New York /
Aug.August 31, 2017 04:20 PM

Akelius Real Estate Management is moving deeper into the Manhattan multifamily market with the $100 million purchase of two adjacent Chelsea rental buildings, the firm told The Real Deal.

The contiguous buildings at 225 West 23rd Street and 220 West 24th Street have a total of 245 apartments, a mix of free-market and rent-stabilized.

The firm, which is the U.S. arm of Swedish real estate giant Akelius, closed Thursday on the deal, paying $808 per square foot and $408,000 per unit.

The seller, Atlas Capital Group, made a quick and hefty profit on the properties. The investment firm bought them from Rao & Rao in 2015 for $72.9 million, and have now sold them for nearly $30 million more in just over two years.

“We will continue to cherry-pick acquisitions and seek out long-term holds,” said Kunal Chothani, who has been head of Akelius’ New York operation since it launched in 2015.

A CBRE team led by Darcy Stacom brokered the deal.

Akelius also closed Wednesday on the $61 million purchase of a Gramercy building.

The two deals bring Akelius’ total New York City holdings to 1,460 rental apartments, Chothani said. The firm started off targeting heavily rent-stabilized Brooklyn portfolios, but has increasingly added more market-rate units through Manhattan acquisitions such as the 199-unit Gramercy building it bought in 2015 for $167.5 million.


Related Articles

arrow_forward_ios
Before the pandemic, national tenants paid 94 percent of rent. (Getty)

Retail rent collections rebound to 90%

Retail rent collections rebound to 90%
Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)

7 Manhattan hotels head to auction block

7 Manhattan hotels head to auction block
As companies leave Silicon Valley, Austin, Texas is becoming a top destination. (Getty)

Silicon Valley exodus: Where’d everyone go?

Silicon Valley exodus: Where’d everyone go?
TF Cornerstone President Frederick Elghanayan with 2-10 54th Avenue and 55-01 Second Street in Long Island City (Google Maps)

The 10 biggest new project filings in NYC

The 10 biggest new project filings in NYC
Gov. Andrew Cuomo announced that a major development surrounding Penn Station. (Getty)

Cuomo adds housing to $51B Midtown West project

Cuomo adds housing to $51B Midtown West project
Alex Sapir (Getty)

Former Sapir employee accuses company of retaliation

Former Sapir employee accuses company of retaliation
(iStock)

Manhattan asking retail rents continue downward spiral

Manhattan asking retail rents continue downward spiral
229 West 43rd Street in New York and Two Westlake Park in Texas. New York and Texas are the states with the largest exposure to loans with appraisal reductions. (Photos via iStock; Google Maps; JLL)

What appraisal reductions mean for future losses on CMBS loans

What appraisal reductions mean for future losses on CMBS loans
arrow_forward_ios

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

Loading...