Fetner, PGIM Team Up on $65M Columbia Student Housing Buy

Columbia University offloaded a student housing property in the Bronx, though students don’t have reason to fear eviction.

Fetner Properties and PGIM closed on a $65 million deal for 3260 Henry Hudson Parkway, a property known as the Arbor, in the borough’s Riverdale neighborhood, the Commercial Observer reported. The deal is a sale-leaseback, meaning the school is still leasing the property over the short term; the cost of that lease is unclear.

The total capitalization of the asset was $73 million. Columbia decided that it was no longer an important asset to own, though the 126-unit residential property is filled with students who utilize a free shuttle service to get to and from the school’s Morningside campus.

Fetner and PGIM landed $47.6 million in acquisition financing and a bridge loan, which will help upgrade and stabilize the property. When Columbia’s lease of the Arbor ends, the developers plan to convert the nine-story building into more traditional residential use.

The three parties involved in the deal did not respond to the publication’s request for comment. A Newmark team including Adam Spies, Eric Roth and Brett Siegel negotiated the sale, while the firm’s Jordan Roeschlaub and Max Ralby negotiated the financing.

Columbia purchased the property, once envisioned as condominiums, from L+M Development Partners in 2008 for $67.6 million. Apartments feature in-unit washers and dryers, while amenities across the broader property include a gym, a playroom, bike storage, on-site parking and a roof deck.

It’s rare to see Columbia on the sell side of a deal, as it often ranks among the largest landlords in New York City, alongside fellow educational institution New York University. Both save millions on property taxes each year because of exemptions written into the state constitution.

Several years ago, state lawmakers — including then-Assembly member Zohran Mamdani — introduced legislation that would strip the property tax breaks from the universities and redistribute the schools’ annual property taxes to the City University of New York. The proposal failed to pass.

— Holden Walter-Warner