Anbau nabs three East Village rental buildings for $58M
Investment fund GRJ sold a package of three East Village rental buildings at 50-58 East 3rd Street to developer Anbau Enterprises for $58 million, four years after buying them for $23.5 million.
The properties, which collectively span 52,500 square feet, closed Friday for $1,105 per square foot.
The deal marks the first purchase of an income-producing asset for Anbau, which is best known for its ground-up projects. Arvind Bajaj, chief investment officer for Anbau, told The Real Deal that the company’s move into income-producing assets was not a sign of limpness in the condominium market but simply a bet on a neighborhood they believe is good value.
“We want to augment our growing in-house condominium business by investing in New York City markets that have long-term growth potential – the East Village certainly fits the bill,” said Anbau managing director Barbara van Beuren.
GJR, founded by brothers Graham and Gregory Jones, gave the properties a major capital upgrade over the past three years. About 25 percent of the 71 apartments are still rent-stabilized units, Koicim said.
Peter Von Der Ahe, Joseph Koicim and David Lloyd of Marcus & Millichap brokered the transaction.
Anbau, which bought the property at a 5 percent cap rate, recently filed plans to build a two-pronged structure rising up to 24 stories at 39 West 23rd Street in the Flatiron District.