Even the biggest recalcitrant of the multifamily cannot resist a boiling market.
Steve Croman, a Manhattan landlord known for harassing tenants but also rarely selling, has parted ways with seven walk-in apartments in the East Village and one on the Lower East Side for about $61 million.
The buildings have 61 apartments, all of which are open market. At just over $1 million per unit, the sale price was nearly double the Manhattan average in March, according to the latest quarterly report from Ariel Property Advisors. market report.
This premium reflects the market price status of the apartments as well as their quality: Most are freshly renovated. And those updates are also a big part of why Croman was inclined to sell, according to Joseph Koicim, senior managing director at Marcus & Millichap.
Koicim, along with Marcus & Millichap’s Seth Glasser, Logan Markley and Matt Berger, brokered the deal.
“Centennial Properties rarely sells properties,” Koicim said, referring to Croman’s company.
“However, they have decided to sell their most mature assets in their portfolio to capitalize on a strong rental market.”
For the majority buyer of the portfolio, ABJ Properties, there is still potential. New York City rents continue to rise and despite growing fears, the economy has yet to show signs of entering a recession.
In June, Manhattan rents rose 27% from the same period last year, according to a recent MNS Real Estate Report. Buildings without a doorman, such as those in the Croman portfolio, have seen even greater price increases than properties loaded with amenities.
“If rents continue on the trajectory that they are, that’s obviously a big plus for the buyer,” Koicim said, adding that the brokerage team was able to secure ABJ financing ahead of rates. interest does not increase significantly.
“This agreement was a real win for both parties,” Koicim said.
Neither Croman nor ABJ Properties returned requests for comment.
Despite these mutual benefits, the sale was not all good for Croman. The owner originally listed 14 of his buildings for $121 million in December.
After ABJ picked up eight, Koicim said, Croman took the other six off the market.
In December, the owner suffered a small loss on a listing on the Lower East Side, which records show is his first sale in years. Croman originally asked for $23.5 million for 182 Stanton Street, according to an article by Avison Young, who handled the transaction. Eventually he sold to Targo Capital Partners for $21.3 million.
In the spring, the landlord hit a rough patch when his office landlord, GFP Real Estate, sued him for months of unpaid rent, taxes and utilities totaling $370,485.
The lawsuit, which named Croman M&E Mott as a defendant, was settled out of court, according to a GFP executive.