The Real Deal New York

Ares Management makes $100M multifamily buy in Westchester

Private equity firm picks up 400-unit garden apartment in Elmsford
By Rich Bockmann | August 17, 2018 03:45PM

Ares’ Michael Arougheti and 32 Nob Hill Drive in Westchester (Credit: Ares and Apartments)

Ares Management bought a 400-unit garden apartment complex in Westchester County for more than $100 million.

The Los Angeles-based alternative assets manager paid $101.3 million to purchase the 418-unit Ridgeview Apartments at 32 Nob Hill Drive in Elmsford, sources told The Real Deal.

The seller is Scarsdale-based investor Frank Palazzolo.

Representatives for Ares Management and Palazzolo were not immediately available to comment. Aliza Avital-Caplan of Emerald Equities NYC brokered the off-market deal, and declined to comment.

Emerald Equities’ Aliza Avital-Caplan (Credit: Emerald Equities)

The Ridgeview Apartments, built in phases between 1990 and 1993, sit on 25 acres about 25 miles north of Midtown, and contains one-, two- and three-bedroom units.

Ares Management last year launched its ninth real estate fund, which targets deals requiring $50 million to $100 million in equity. The fund earlier this year agreed to purchase a 12-property multifamily portfolio spanning Tennessee, Texas, Georgia and North and South Carolina from Cottonwood Residential for $440 million.

In New York, the firm sold a five-building Harlem portfolio in June for $26.5 million, nearly double the $14.5 million the company paid for the properties in 2012. Ares is currently in talks to sell its stake in the Greenwich Village office project at 799 Broadway to Columbia Property Trust.

In 2016 the condominium board at Trump Tower in Westchester, where Palazzolo served as the board’s treasurer, filed a lawsuit claiming he stole up to $8.7 million from the property over several years.

The case is still ongoing.