Prana pays Related $36M in Bronx multifamily play

Related developed Concourse buildings in 1999 with LIHTC program
By Rich Bockmann | July 08, 2019 08:30AM

1065-1075 Gerard Avenue in the Bronx 

1065-1075 Gerard Avenue in the Bronx

Prana Investments bought a pair of multifamily buildings in the Bronx from the Related Companies’s asset management arm for nearly $40 million.

Prana, the multifamily investor headquartered in San Francisco, paid $36 million to pick up the 252-unit River Court and Gerard Court apartment complex in the Concourse section of the Bronx, sources told The Real Deal.

The pricing works out to about $142,000 per unit for the buildings at 1065-1075 Gerard Avenue. The seller was Related Asset Management

Representatives for Related and Prana could not be immediately reached for comment. A Hodges Ward Elliott team of Daniel Parker, Paul Gillen and Ariel Tambor marketed the properties for Related and negotiated the sale. The brokers declined to comment.

Related developed the elevator building near Yankee Stadium in 1999 through the Low Income Housing Tax Credit program. The properties have a 25-year 421a tax exemption.

Prana Investments, headed by president and CEO Neil McKinnon, is an active investor in the Bronx and – to a lesser extent – northern Manhattan.

The company last year paid $65 million to buy a portfolio of eight Bronx multifamily buildings spanning 361 residential units from the Morgan Group.

The Hodges Ward Elliott brokers have sold a number of buildings for Related recently, including the $88 million sale of a pair of multifamily buildings in the Castle Hill section of the Bronx to Abraham Furchthandler earlier this year. The brokers also sold a piece of a large portfolio Related owned with the New York City pension funds last year to Taconic Investment Partners for roughly $70 million last year.