Wong’s Verbena wants $170M+ for Manhattan rental

Dennis Wong’s Verbena Road Holdings is looking to sell its Kips Bay multifamily building.

San Francisco-based Verbena is seeking north of $170 million for the 209-unit Lanthian building at 377 East 33rd Street. The 23-story building, built in 1998, is completely free-market, according to marketing materials from Eastdil Secured.

Verbena is packaging the property with an assumable mortgage, which has helped properties sell in a tough financing environment. The property has a $103 million loan with New York Life Insurance Company. Interest rates have risen significantly since that 2019 financing, choking off investment sales.

A representative for Verbena did not immediately respond to a request for comment.

Wong, who is part owner of the Los Angeles Clippers, acquired full control of the Lanthian in 2018 when he bought out his partner at the property, the Dermot Company. Verbena paid nearly $50 million for the stake, property records show.

Multi-Housing News reported that the Lanthian last sold in 2016 for $173 million and that apartment interiors, common areas and building amenities were improved prior to the $103 million loan.

Archstone purchased the building in 2011 from Madison International Realty for $131 million, according to Yardi Matrix, then sold it in 2013 to AvalonBay Communities as part of a portfolio sale, according to the publication. AvalonBay then sold it to Dermot and Verbena.

Units range from studios to four bedrooms, but the average size is 724 square feet.

The luxury doorman building gets high-end rents. An 850-square-foot, one-bedroom apartment was recently listed on StreetEasy for $6,300 a month, and a renovated two-bedroom is being advertised for $8,400. In early 2018, a large two-bedroom was going for $5,800.

The building sits in the heart of the medical and life sciences corridor anchored by NYU Langone. NYU’s medical college leases more than 20,000 square feet of commercial space in the building on an agreement that runs through 2038.