The Real Deal New York

Taconic is taking a chunk of Related’s massive Bronx holdings

Seller had bought the multifamily buildings in 2015
By Mark Maurer | January 17, 2018 08:00AM

From left: Charles Bendit, Steve Ross, Paul Pariser, 1065 Jerome Avenue and 2608 Creston Avenue

UPDATED, 12:12 p.m., Jan. 17: The Related Companies and the New York City pension funds are selling a piece of their extensive Bronx multifamily holdings to Taconic Investment Partners, in what would amount to a short-term multifamily play.

Taconic is in contract to acquire 12 rental buildings throughout the borough for just north of $70 million, sources told The Real Deal.

The package, which consists of 368 rent-stabilized apartments, is largely from the 20-building portfolio that Related and the pension funds grabbed in 2015 for $112.5 million.

Taconic, led by Paul Pariser and Charles Bendit, is expected to close on the purchase in February at around $190,000 per door. A Hodges Ward Elliott team led by Will Silverman, Daniel Parker and Paul Gillen is brokering the deal. Representatives for Taconic, Related and Hodges declined to comment.

The buildings are mostly walkups located in Fordham, Belmont and Concourse. The addresses are: 2543, 2549, 2553, 2559, 2563, 2567 Decatur Avenue; 2353 and 2357 Crotona Avenue; 1098 and 1112 Gerard Avenue; 1065 Jerome Avenue; and 2608 Creston Avenue.

Related and Taconic — New York City developers presently tackling the megaprojects Hudson Yards and Essex Crossing, respectively — each own at least 100 multifamily properties in the city.

In the Bronx alone, Related owns nearly 4,000 apartments, which sources said the Parkoff Organization approached the firm about selling last year. The deal fell apart before going into hard contract, sources added.

Sources said the pension funds have been eager to dispose of the assets, which may have expedited the move to sell the 12 buildings. The partners also sold two Bronx buildings to L.A.L. Property Management Corporation for $25 million in November.

Related had made the purchases through its subsidiary Related Fund Management, which recently launched a bid to buy the lender Ladder Capital and is lending $180 million in construction financing for a proposed Margaritaville hotel in Times Square.

Eddie Small contributed reporting.