Related buying final piece of Jack Parker apartment portfolio for $250M

The developer could turn a tidy profit if it decides to convert the rental into condos

Sep.September 12, 2018 06:00 PM

Related CEO Stephen Ross and 34 Desbrosses Street (Credit: Getty Images and Google Maps)

The Related Companies is buying a luxury apartment building in Tribeca for $250 million.

Steve Ross’ firm is buying the 291-unit Truffles Tribeca building at 34 Desbrosses Street from the Jack Parker Corporation, sources told The Real Deal.

The Jack Parker Corporation developed the apartment building, which sits on a full block facing the Hudson River between Vestry and Desbrosses streets, in 2009. The property consists of a pair of towers — one 11 stories and the other 15 stories — connected by a sky bridge and surrounding a private, gated courtyard.

Representatives for Related and the Jack Parker Corporation did not respond to requests for comment.

Related is likely quite familiar with the building. On the block directly to the north, the company in 2016 opened the 11-story, 84-unit luxury rental building it developed at 456 Washington Street.

And on the block immediately to the south, Related developed the Robert A.M. Stern-designed condo building at 70 Vestry Street The developer last year said it was in contract to sell a penthouse that had been asking $65 million at a price that would set a downtown record.

Truffles Tribeca has a 10-year 421a tax abatement that expires in 2021, and marketing materials show the building could turn a tidy profit as a rental-to-condominium conversion play.

One-bedrooms — the most common unit type in the building — would ask an average $2.2 million, or $3,460 per square foot, marketing materials show. Three-bedrooms would ask an average of $4.3 million, or $3,360 per foot.

If Related were to keep the building as a rental, its gross potential rental income could increase to as much as $21.9 million in 11 years.

The property is the last of the massive, 2,082-unit multifamily portfolio the Jack Parker Corporation put on the market earlier this year as the company looks to divest of its real estate holdings.

The company hired a team at Newmark Knight Frank of Jimmy Kuhn, Michael Byrne and David Colen to market the properties.

Slate Property Group and GreenOak Real Estate are buying Jack Parker’s 464-unit Biltmore rental building at 271 West 47th Street in Midtown for $250 million. And the Blackstone Group is paying $500 million to buy the company’s 1,300-unit Parker Towers complex in Forest Hills, Queens.

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