Meadow Partners acquires two apartment buildings in the East Village for $58 million

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For Meadow Partners, the buildings offer potential because units currently rent below current market value and properties have elevators, a rarity in the East Village, Kaplan said. But he called Manhattan’s rising rents “worrying.”

“It’s not sustainable, the level of rent growth we’ve seen, but there’s a little more room for growth,” he said.

The percentage of stabilized units in the buildings is a little higher than what Meadow Partners usually buys, which is around 15-20%.

“We’re assuming there’s enough upside in the free market portion that we can get the returns we want if rent growth is just flat on stabilized units,” Kaplan said.

And as leases expire and tenants move out, the new landlord will look at opportunities to renovate units, but the market is so strong now that extensive gut renovations aren’t needed to raise rents, he said. added.

The company secured funding from Cerebrus Capital but declined to disclose the amount.

Other company properties in the East Village include 164 and 163-167 First Ave., 47 and 81-83 Saint Marks Place, and 426-430 E. 14th St.

In December, Meadow Partners teamed up with Davean Holdings to buy a mark-to-market 12-unit multi-family apartment complex in Manhattan and Brooklyn, also for $58 million in cash.

The Brooklyn buildings were 420, 426, and 428 Seventh Ave.; 143 Noble Street; 368 Court Street; 475 Sixth Avenue; 1501 Eighth Avenue; and 159 Newel St. Manhattan properties included 231 and 235 Sullivan St., 164 First Ave. and 53-55 Stone St.

He also bet big on the office market when he bought struggling 95 Morton St. from RFR Realty for $288 million last month and 218 W. 18th St. from Columbia Property Trust in Chelsea for $170 million. dollars in December.

Other institutional buyers also purchased older, smaller rental properties in the city.
Private equity firm Carlyle Group has quietly spent $500 million to raise 130 rental properties in various Brooklyn neighborhoods since last year.

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