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Bigger: The $ 1.75 billion sale of a building sets a record for New York's pandemic era

one east river place portfolio record
One East River Place, one of the six properties in the portfolio. Google Earth

The estimated prices for these six Upper East Side buildings have always been higher than any other building in New York. Is also high. Pandemic. 

Investment companies and developers have agreed to pay $ 1.75 billion for market-priced housing choices, people familiar with the matterI told the Wall Street Journal

This transaction set a new record for pandemic-era purchases of New York's multi-family portfolio properties. Also, despite rising inflation,recessionand ongoingcryptocurrency crashrented in the city. It shows that demand for real estate is still strong. 

Insiders say Black SpruceManagement LLC and Orbach AffordableHousing Solutions LLC, which are expected to be well over $ 1 billion, plan to pay for the six Manhattan Towers that arrived after a fierce bidding war. Told the journal. As a successful bidder, the company aims to have an initial return rate of 3-5% for the building. This is a relatively low rate compared to other commercial real estate. 

one east river place portfolio record
Google Earth

All six addresses are integrated into Dorman's building But other than that, it's very different. Built between 1960 and 2018, one-bedroom rents range from $ 3,900 to $ 7,000 per month, and about 1,700 units, or 15% of the apartments, are subject to rent control. The only specific address designated by the journal is the one East River Place, a 50-story structure with 414 amenities-rich units in the Lenox Hill area.

Experts say the planned sale is a good sign for the residential real estate market, showing that rental properties are stable despite the suffering of other sectors. .. 

"People still need apartments. There is still a lot of demand," John Pawlowski, head of the residential real estate sector at real estate analytics firm Green Street, told Journal. "I know what will happen in the economy, but 2022 and 2023 should be very good years for New York City apartment landlords."