A multifamily real estate portfolio consisting of six Manhattan apartment buildings has sold for $1.75 billion, the greatest sales level since the COVID-19 pandemic began.
What Happened: The Wall Street Journal, citing unnamed “people familiar with the matter,” said the portfolio was acquired by the investment firm Black Spruce Management LLC and the residential developer Orbach Affordable Housing Solutions LLC.
The six buildings are based on Manhattan’s Upper East Side and were constructed from the 1960s through 2018 by the late developer Sheldon Solow. Most of the approximately 1,700 apartments are market-rate — for Manhattan, that ranges from $3,900 to nearly $7,000 per month.
Why It Matters: Manhattan’s residential real estate market was gut-punched during the pandemic, with many residents fleeing the city for suburban markets. However, the market has done a dramatic turnaround, with a Douglas Elliman report pointing to a $4,000 median rent for Manhattan apartments during May.
The Journal also noted many of the leases in the newly acquired six-building portfolio were signed during the pandemic when landlords lowered rent prices to retain tenants. But since the pandemic has waned, the new owners will have the opportunity to generate increased revenue by raising rents.
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