The Real Deal New York

Health care firm picks up four-building Queens portfolio

Package contains 62 apartments and spans roughly 86K SF
By Eddie Small | September 21, 2017 02:35PM

Clockwise from top left: 14606-14624 Farmers Boulevard, 177-50, 176-20, and 177-16 South Conduit Avenue (Credit: Team Preuss)

The nursing home and health care company VestraCare has snatched up four luxury multifamily buildings near JFK Airport in Queens.

VestraCare bought the properties from Powerhouse Development Corp, the company that built them, for $14.1 million, according to Cushman & Wakefield‘s Stephen Preuss, who brokered the deal.

The developments, dubbed the Springfield Gardens portfolio, contain a total of 62 apartments and are located at 177-50, 177-16 and 176-20 South Conduit Avenue, as well as 14606-14624 Farmers Boulevard. Powerhouse was looking to sell because the company is moving its corporate offices to Florida, according to Preuss.

Although VestraCare now owns three nursing homes in New York, the company does not plan to convert the Queens properties into senior care facilities, Preuss said. Rather, they will renovate them in an effort to increase the rents.

The buildings span slightly more than 86,000 square feet overall. The Empire House at 176-20 South Conduit Avenue and the Liberty House at 177-16 South Conduit Avenue each contain 16 units, while the New Yorker building at 177-50 South Conduit Avenue contains 20 units, and the Farmers Boulevard property consists of 10 townhouses. The properties were all built between 2002 and 2007, and current rents range from roughly $1,000 to $2,000.

Preuss said it was uncommon to find anything other than affordable housing in neighborhoods close to JFK.

“It’s a rarity down by the JFK marketplace,” he said. “Typically, you‘ll get more affordable housing down there. You’ll get some affordable stock, but for newer built mid-level to luxury apartments, this is a one of a kind asset for the JFK marketplace.”