Slate and Fortress buy $78 million multi-family portfolio in Manhattan
Slate Property Group and Fortress Investment Group bought a pair of Manhattan apartment buildings for $78 million. Both were owned by Rose Associates, a New York multi-family company run by Amy Rose.
The larger of the two buildings, a prewar rental at 231 East 76th Street, contains 90 apartments. The other, at 340 East 52nd Street in Midtown East, has 66 rentals and is nine stories tall.
Slate will operate both buildings, which combine for 133,000 gross square feet. Both include commercial spaces on the ground floor.
CBRE’s William Shanahan and Daniel Kaplan handled the sale.
Slate says it plans to renovate both buildings, with a focus on improving amenities, apartment interiors and common areas.
The expiration in two weeks of 421a, a controversial tax break that developers consider almost essential to the construction of multi-family rental units, seems to make existing rentals more valuable because there will be fewer new offers offering competition.
Martin Nussbaum, co-founder and director of Slate, said the company is increasing its multi-family portfolio. He said before The real deal that he expects the company to close multifamily sales worth $400 million in the weeks around the June 15 expiration of 421a.
Slate has also been active in multifamily lending, disbursing just over $200 million for rental projects in Williamsburg and Fort Greene earlier this year.