The discounted sale of Taconic’s rent-regulated portfolio of multifamily buildings in the Bronx featured heavily in the tally of mid-market investment sales that hit city records last week.
A year after the company bought the buildings in 2018, the state legislature passed rent reform measures that landlords say cut into their profits, and debt on the buildings reportedly matured at a time when higher interest rates made refinancing more costly.
Other investment sales between $10 million and $40 million included an office building in Tribeca and an industrial site in Maspeth. Below are more details of mid-market commercial property sales for the week of April 17-21:
- Churchill Real Estate sold a five-story, 18,300-square-foot office and retail building at 381 Broadway in Tribeca to limited liability company Wall Bridge Properties for $16.75 million. Churchill obtained the property in 2021 after it bought the senior debt on the building and won a years-long foreclosure dispute it began against prior owner Gary Tse of CTW Realty in 2018.
- Lonnie and Perry Fine’s Triangle Services bought a 40,000-square-foot development site at 54-37 48th Street in Maspeth, Queens, for $13 million. The site is zoned for manufacturing. The seller was the Parisi family.
- Taconic Investment Partners sold two rent-stabilized apartment buildings with a combined 120 units at 1098 and 1112 Gerard Avenue in Concourse, the Bronx for $12.8 million. It was the largest piece of a portfolio of Bronx rental buildings that Taconic sold to Intervest Capital, an affiliate of Kuwait's sovereign wealth fund formerly called Wafra Capital, which picked up the properties at a substantial discount.
Also included in the deal was a 58-unit rent-stabilized building at 1197 Grand Concourse for $10.2 million; six buildings with 98 combined units on Decatur Avenue for $9.5 million; a 73-unit building at 1534 Selwyn Avenue for $9 million and a 54-unit building at 2608 Creston Avenue for $6.6 million.
Taconic had bought the Gerard and Decatur Avenue buildings from Related Partners in 2018. It bought the Grand Concourse and Selwyn Avenue buildings in partnership with Clarion Partners that same year.
- Bluestone Group sold a 30,000-square-foot retail condo on the first floor of a six-story rental building at 90-02 Queens Boulevard in Elmhurst, Queens, for $10.4 million, and a 35,000-square-foot retail condo in the cellar for $8 million. The buyer was an affiliate of KSR Capital. Bluestone acquired the property out of foreclosure in 2019. The apartment building was converted from St. John’s hospital.
- Fifth was Taconic’s sale of the 58-unit building at 1197 Grand Concourse in the Bronx for $10.2 million, as mentioned above.
- Gary Barnett’s Extell Development sold a 9,300-square-foot retail condominium at 50 Riverside Boulevard in Lincoln Square for $10 million to an affiliate of the Collegiate School, a private college prep school for boys where annual tuition exceeds $60,000.