A&E Real Estate pays $415M to Equity Residential for 455-unit rental in Lincoln Square

A&E Real Estate Holdings through the entity 160 Riverside Boulevard, LLC paid $415 million to Equity Residential through the entity Eqr-160 Riverside, LLC for the 455-unit residential elevator building (D6) at 160 Riverside Boulevard in Lincoln Square, Manhattan.
The deal closed on July 14, 2022 and was recorded on August 4, 2022. The property has 524,466 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $791 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on October 30, 2015, for $1.7 million. The signatory for Equity Residential was Cydney White. The signatory for A&E Real Estate Holdings was Darryl Smith. The Commercial Observer first reported the sale, and the brokers were Darcy Stacom and Ryan Silber of CBRE.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer A&E Real Estate Holdings purchased 10 properties in seven transactions for a total of $574 million and sold 40 properties in one transactions for a total of $14.2 million over the past 24 months.
The seller Equity Residential had not purchased any other properties and sold one properties in one transactions for a total of $265.6 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Jim Von Albade, head officer and Tatiana Bond, officer. The business entities are Equity Residential Management Llc and Eqr-160 Riverside, L.L.C. The 524,466-square-foot property generated revenue of $24.9 million or $48 per square foot, according to the most recent income and expense figures.

The property

The 160 Riverside Boulevard parcel has frontage of 258 feet and is 183 feet deep with a total lot size of 43,964 square feet. The lot is irregular. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $158.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received eight DOB violations, five housing violations, and $8,550 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of 17 of the 72 commercial properties representing 4,279,229 square feet of the 6,491,203 square feet. The largest owner is Equity Residential, followed by Brodsky Organization and then GID Real Estate Investments.
There are six active new building construction projects totaling 3,027,811 square feet. The largest is a 645-unit, 878,798-square-foot R-2 building developed by John Gagnier with plans filed May 6, 2015 and permitted December 13, 2016. The second largest is a 361-unit, 754,739-square-foot R-2 building developed by Yoel Shargian with plans filed October 2, 2013 and permitted April 3, 2015.

The majority, or 87 percent of the 4.4 million square feet of built space are elevator buildings, with office buildings next occupying 9 percent of the space.

The seller

The PincusCo database currently indicates that Equity Residential owned at least nine commercial properties in New York City with 2,548,675 square feet and a city-determined market value of $725.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are elevator properties. The bulk, or 69 percent of the built space, is in Manhattan, with Brooklyn next at 31 percent of the space.

The buyer

The PincusCo database currently indicates that A&E Real Estate Holdings owned at least 161 commercial properties in New York City with 12,519,406 square feet and a city-determined market value of $1.3 billion. (Market value is typically about 50% of actual value.) The portfolio has $1.7 billion in debt, with top three lenders as Signature Bank, JPMorgan Chase, and MF1 Capital respectively. Within the portfolio, the bulk, or 72 percent of the 12,519,406 square feet of built space are elevator properties, with walkup properties next occupying 27 percent of the space. The bulk, or 57 percent of the built space, is in Queens, with Manhattan next at 31 percent of the space.

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