Firm Capital partners with Rhodium on $37M Upper Manhattan portfolio buy

Two companies acquired 127 units across 8 buildings in Central Harlem

From left: 158-130 West 159th Street and Eli Dadouch
From left: 158-130 West 159th Street and Eli Dadouch

UPDATED, 11:00 a.m., Dec. 23: The Firm Capital Organization, a private equity shop based in Toronto, joined with Rhodium Capital Advisors to buy a Central Harlem multifamily portfolio for $37 million, or nearly $400 per square foot.

The eight-building portfolio comprises 127 apartments and two retail units across 94,572 square feet.

The buildings are located at 200-222 West 149th Street, 2546-2548 Adam Clayton Powell, Jr., Blvd., 528 West 159th Street, 530 West 159th Street, 532 West 159th Street, 534 West 159th Street, 536 West 159th Street, and 538 West 159th Street.

The deal is Firm Capital’s first major investment in the U.S. as part of its strategy to purchase “undervalued” multi-residential properties in emerging neighborhoods within major markets, said Michael Weitzner, a managing director at the firm, noting that the company plans to make improvements to the properties. About half of the 127 residential units are rent-regulated.

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The seller was an entity affiliated with Haim Nortman of Cascade Ventures, according to public records. Cascade could not be reached for comment. Arbor Realty Trust provided the partnership with an acquisition loan.

GFI Realty’s Roni Abudi, Daniel Shragaei and Ohad Babo represented the seller, while FA Realty Services represented the buyer. Eastern Union’s Jeffrey Seidenfeld brokered the debt deal, while his colleague Marc Belsky served as an equity advisor.

Rhodium has been an active purchaser of multifamily product in Upper Manhattan. Earlier this year, the firm bought a 13-building portfolio for $98 million, or $394 per square foot, from Tibeir GSA & Investment Trust, an Israel-based investment fund. It also scooped up a portfolio of six Upper Manhattan buildings for $34.1 million in late 2015.

Additions: This story was updated to include the brokers on the deal