New landlord on the block: Ryco pays $132M for portfolio needing work

Ryco Capital, a relatively new addition to the city’s multifamily investment scene, dropped $132 million in June on a multifamily portfolio in need of some elbow grease.

The deal closed in the same quarter that New York City’s sleepy multifamily market sprung to life as sponsors rushed to unload buildings before their loans matured in a higher-rate environment.

Ryco, founded in 2018 by James Ryan, bought nine East Village apartment buildings from family owner Jonis Realty. The properties are on Second Avenue between East 7th and East 10th streets and comprise 177 units, plus ground-floor retail, according to property records.

Jonis had managed to rack up 701 violations across the portfolio, an average of four per unit, according to city records.

It’s unclear if Jonis had loans on the buildings coming due. Neither the firm nor Ryco responded to requests for comment.

But the deal seems to function as a win-win, relieving the longtime owner of its Second Avenue headache and fitting nicely into Ryco’s niche.

Ryco specializes in renovating assets that have “suffered from under-investment and deficient management,” according to its website, meaning a fixxer-upper like the Jonis portfolio is its bread and butter.

Renovations will allow for rent hikes in a market where prices are flirting with fresh highs. In June, the most recent month for which data is available, Manhattan’s median rent hit $4,300, matching a record for the month set last year.

A two-bedroom at 127 Second Avenue rented for $3,300 in March, according to StreetEasy, an indication that Ryco has some room to run.

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The buildings are 20 percent rent-stabilized, which shouldn’t weigh too heavily on overall rent growth.

The properties are 127, 129, 131, 141, 145, 149, 151, 156 and 157 2nd Avenue.