Rent-stabilized portfolio in Harlem trades for $118M

It’s the second big apartment portfolio to trade hands after the new rent law was signed in June

New York /
Jan.January 03, 2020 06:06 PM
2041 Adam Clayton Powell Junior Blvd in Harlem (Credit: Google Maps)

2041 Adam Clayton Powell Junior Blvd in Harlem (Credit: Google Maps)

Another sizeable New York City rent-stabilized apartment portfolio traded before the end of 2019.

An entity tied to Yechiel Newhouse paid about $118 million for a 407-unit portfolio of 31 mostly rent-stabilized buildings in Harlem in a deal that closed on Dec. 20, according to public records. The portfolio also includes retail. The seller was Ben and Jon Soleimani’s ABJ Property, which assembled the Harlem buildings in pieces over the years, records show. The firm made several multifamily purchases in Manhattan and the Bronx in recent years.

New York Community Bank provided Newhouse with $90 million in financing for the purchase.

The broker on the sale, Victor Sozio of Ariel Property Advisors, declined to comment on the deal. The buyer and seller were not immediately available to comment. New York Community Bank didn’t immediately respond to a request for comment.

More than 85 percent of the residential units are rent stabilized, according to tax filings. The portfolio includes nine mostly contiguous buildings on Adam Clayton Powell Jr. Boulevard and four buildings between 120th and 122nd streets on Manhattan Avenue.

The trade is just the second sizeable rent-stabilized portfolio to trade since the New York State legislature made significant changes to the rent stabilization law. Doug Eisenberg’s A&E Real Estate Holdings bought a sprawling Rego Park portfolio for $129.5 million, a 38 percent discount from the portfolio’s original ask.

The drastic changes limited the increases to rents that may be passed on to tenants for apartment and building-wide improvements, and eliminated nearly all pathways to bring rent-stabilized apartments to market rate.

The value of multifamily buildings sold in the third quarter of last year totaled $1.1 billion — about half of what it was in the same period last year.


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Here’s what the $10M-$30M NYC investment sales market looked like last week
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Joan Collins and 110 East 57th Street #8EFG (Getty, BHS)

Soap star Joan Collins lists longtime Midtown pied-à-terre

Soap star Joan Collins lists longtime Midtown pied-à-terre
TF Cornerstone President Frederick Elghanayan with 2-10 54th Avenue and 55-01 Second Street in Long Island City (Google Maps)

The 10 biggest new project filings in NYC

The 10 biggest new project filings in NYC
Eric Malley was arrested earlier this week. (Getty)

Feds indict NY real estate exec in $50M fraud scheme

Feds indict NY real estate exec in $50M fraud scheme
(iStock)

Manhattan asking retail rents continue downward spiral

Manhattan asking retail rents continue downward spiral
New Yorkers signed leases in record numbers last month. (Getty)

Manhattan, Brooklyn rental leasing hit 12-year high in December

Manhattan, Brooklyn rental leasing hit 12-year high in December
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...