HUBB NYC picks up LES rental for $64M

Deal is one of the few 421a buildings to trade as program is set to expire

New York /
May.May 27, 2022 02:49 PM
171 Chrystie Street, HUBB’s John McCarthy and Be Aviv’s Ben Harlev (171 Chrystie Street, Ben Harlev via NadlanCityNY)

171 Chrystie Street, HUBB’s John McCarthy and Be Aviv’s Ben Harlev (171 Chrystie Street, Ben Harlev via NadlanCityNY)

Three weeks before 421a is set to expire, HUBB NYC picked up one of the few apartment buildings developed on the Lower East Side under the program for $64 million.

HUBB, led by president John McCarthy, bought the 78-unit rental building at 167-171 Chrystie Street from developer Be Aviv, the buyer told The Real Deal. The purchase price was $63.5 million.

HUBB head of acquisitions Jesse Terry wrote in an email that he considers the deal to be a rare opportunity, given the expiration of multifamily development tax break Affordable New York on June 15.

“In light of the expiration of the program in June, we do consider a Manhattan Affordable NY deal a unicorn,” he said. “The use of the program was much more common in the boroughs.”

Be Aviv, run by Ben Harlev and Eyal Epstein, purchased a ground lease on the site in 2017 for $9.5 million and developed it into the 16-story luxury doorman building. A brokerage team of Joseph Friedman and Julian Perla at Blackshore Realty Group negotiated the off-market sale to HUBB.

HUBB has been active in the 421a space. Last year the company paid $105 million to buy a 141-unit Affordable New York building in Harlem at 56 West 125th Street.

Gov. Kathy Hochul laid out a plan earlier this year to replace 421a when it expires in June, but it now appears the program will expire without a replacement.





    Related Articles

    arrow_forward_ios
    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
    Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)
    New NYC rent law “beginning to shut down investment”
    New NYC rent law “beginning to shut down investment”
    Numbers were down across the board (Credit: iStock)
    New York’s multifamily market had its slowest first half of the year since 2011
    New York’s multifamily market had its slowest first half of the year since 2011
    240 Sullivan Street and Sky Management’s Jonathan Ohebshalom (Sky Management, Google Maps, iStock)
    Sky buys Greenwich Village mixed-use building in quiet week for i-sales
    Sky buys Greenwich Village mixed-use building in quiet week for i-sales
    Skylight Real Estate's Bennat Berger with 300 Grand Street (Skylight Real Estate, Street Easy, iStock)
    Scarcity play: Hoboken apartments fetch $56M
    Scarcity play: Hoboken apartments fetch $56M
    Orbach Affordable Housing Solutions' Meyer Orbach and One East River Place (Orbach Housing, Google Maps)
    Black Spruce, Orbach strike $1.8B NYC multifamily deal
    Black Spruce, Orbach strike $1.8B NYC multifamily deal
    Nelson Management’s Robert Nelson with the Promenade Nelson Apartments and Lafayette Boynton Apartments (Nelson Management)
    Nelson Management eyes $200M for Bronx apartments
    Nelson Management eyes $200M for Bronx apartments
    Gov. Kathy Hochul (Photo by Sasha Maslov)
    At REBNY gala, Hochul pledges to “support” real estate
    At REBNY gala, Hochul pledges to “support” real estate
    arrow_forward_ios

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

    Loading...