NEW YORK, NY - Broad Street Development (BSD), a multi-faceted investor and developer, has acquired 298 Mulberry Street and 304 Mulberry Street, two multi-family buildings with 182 apartments, with investment partner Crow Holdings, a national real estate investment fund. The partnership acquired the two-property residential portfolio for $178.5 Million from GID Investment Advisors LLC, a private, globally diversified organization headquartered in Boston, MA.
This acquisition comes on the heels of BSD's tremendous sales success at its 215 Sullivan Street condominium project nearby. This ground-up development completely sold out in four months over the summer at record-breaking Greenwich Village prices exceeding $3,000-psf.
"The acquisition of the Mulberry Street portfolio will provide us with the ideal opportunity to bring our targeted investment strategy and hands-on ownership style to these assets, and to duplicate the great success we've had with both our rental and condominium residential projects," said Raymond Chalme, principal of BSD, which celebrates its 10th anniversary in January. "Given our intimate knowledge of this neighborhood and our respect for its historic standing and desirability, we see a great opportunity to add value to these assets by enhancing the product and meeting the market's strong rental demand."
BSD and Crow Holdings will immediately embark on a $3.5 Million renovation campaign comprised of significant aesthetic and operational improvements to maximize the portfolio's value. Planned improvements include the installation of new windows, new roof and roof decks, the redesign and renovation of the lobbies, modernization of interior areas, and upgrades to individual homes, including kitchens and bathrooms.
The properties are located at the crossroads of Manhattan's white-hot Greenwich Village, SoHo and NoHo neighborhoods, just across the street from the landmark, iconic Puck Building. The buildings at 298 and 304 Mulberry Street consists of 182 apartments, 11,825 square feet of prime ground floor retail space with full frontage on both Houston and Mulberry Streets, and an on-site parking garage. The properties are easily accessible via public transportation, boasting direct access to multiple subway lines including the B, D, F, M, and 6 trains, several bus routes and the Lafayette Street and Jersey Street Citi-Bike stations are just one block away.
The seller was represented by the HFF sales team of Andrew Scandalios, Jeffrey Julien and Rob Hinckley. Mike Tepedino, Michael Gigliotti and Sam Nidenberg of HFF arranged financing, with Michael Eglit and Michael Henry of Blackstone for 304 Mulberry Street and Rob Dirks of Principal Real Estate Investors for 298 Mulberry Street. Eli Dweck of Wachtel Missry LLC, represented BSD in the acquisition.
BSD's recent successes in the residential property arena include the record-breaking sales achieved at 215 Sullivan Street as well as the successful condominium conversions of 140 homes at 184 Thompson Street and 100 luxury condominium homes at Maison East, located on Third Avenue and 81st Street. BSD also handles management and leasing at its Gramercy Portfolio consisting of 208 units between two buildings on 22nd Street. The company is widely respected for its investment philosophy and hands-on management - attributes that have resulted in the completion of some of the city's most noteworthy and unique residential projects.
In addition to its residential investments and developments, BSD is also a major force in the commercial real estate industry. The company made headlines this fall for acquiring the office tower at 80 Broad Street for $173 Million. Recognized for their expertise in creating outstanding value for their properties, the BSD team is embarking on a major capital improvement campaign at the asset. The purchase followed the successful repositioning and subsequent sale of 55 Broadway and 61 Broadway, for nearly a combined $500 Million in 2014.
"Ten years ago, we promised to build a unique real estate business, focused on creating value through hard work, attention to tenants' needs, excellent workmanship and design, and belief in the Downtown market," said Daniel Blanco, a BSD principal. "Today, as we look at our portfolio and our track record, we know we can celebrate our 10th anniversary with great pride at the fulfillment of our promise, and look to a future that builds on this commitment."