Equity Residential looks to sell two Manhattan properties in soft rental market

Glut of new supply is pushing rents down
September 17, 2018 09:30AM

From left: 505 west 54th Street, Equity Residential’s founder Sam Zell, and 800 6th Avenue

Equity Residential is looking to sell two Manhattan multifamily buildings amid the city’s softening rental market.

The real estate investment trust has put 800 Sixth Avenue in Chelsea and 505 West 54th Street in Hell’s Kitchen on the market, Bloomberg News reported. No pricing was given for the properties.

A spokesperson for Equity Residential declined to comment, but outgoing CEO David Neithercut said on a July earnings call that the company is trying to reign in its exposure to the West Side of Manhattan, where a recent glut of new apartments has weighed down rents.

The company was listing one building as “an opportunity to address the negative impact in our New York City growth rates,” he said.

Sitting between 27th and 28th streets, 800 Sixth Avenue was built in 2003 and has 266 units. And 505 54th Street, which was constructed in 2001, has 222 units.

Equity Residential last week wrapped up the $416 million sale of the 506-unit 101 West End Avenue to Dermot, PGGM and USAA. Cushman & Wakefield’s Doug Harmon and Adam Spies exclusively brokered the sale of 101 West End Avenue, and are marketing the properties at 800 Sixth Avenue and 505 West 54th Street.[Bloomberg] – Rich Bockmann