Fairstead, Invesco acquire $148.5M interest from Property Resources Corp. for affordable property valued at $350M

Fairstead and Invesco acquired an interest valued at $148.5 million from Property Resources Corp. for affordable housing in the Bronx, in a deal that reportedly valued the assets at $350 million. The approximately 1,900 units were sold in five transactions for rental buildings and some commercial assets.

This was an entity level sale and not a deed transfer, composed of five transactions for 1,930 units totaling $148.5 million. Crain’s first reported the sale with a value of approximately $350 million and Fairstead released a press release that did not disclose a price. It’s unclear why there is a price discrepancy. No New York City transfer tax was paid, but approximately $1 million in state transfer tax was paid.

According to Crain’s the units in the portfolio are for renters earning between 30 percent and 100 percent of the area median income, which is now between $35,790 and $119,300 for a family of four.

In the largest transaction, Fairstead and Invesco through the entity Bronx Preservation Holdings LLC acquired an interest from Property Resources Corporation through the entity F&J Development Associates, LLC valued at $38.6M for 236-unit bulk condos (BS) at 975 Simpson Street in Longwood, Bronx, 54-unit rental (D5) at 1240 Westchester Avenue in Longwood, Bronx, and 46-unit rental (D5) at 1075 Longfellow Avenue in Longwood, Bronx.
The deal closed on December 10, 2021 and was recorded on January 3, 2022.
The five properties have 573,208 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $67 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 owners according to the Department of Housing Preservation and Development includes David Gartenlaub, head officer and Stacey Berry, site manager. The business entities are Prc Management Co Llc and Prc Westchester Ave.

Direct link to Acris document. link

In the second, Fairstead and Invesco through the entity Bronx Preservation Holdings LLC acquired an interest from Property Resources Corporation through the entity F&J Development Associates, LLC valued at $38.0M for 48-unit rental (D1) at 940 Tiffany Street in Longwood, Bronx, 43-unit rental (D7) at 923 Simpson Street in Longwood, Bronx, and 30-unit rental (D3) at 891 Fox Street in Longwood, Bronx.
The deal closed on December 10, 2021 and was recorded on January 3, 2022.
The 12 properties have 338,380 square feet of built space and 27,023 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $112 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 owners according to the Department of Housing Preservation and Development includes David Gartenlaub, head officer and Michael Nowlin, agent. The business entities are Prc Management Co.,Llc and Prc Simpson Street Llc.

Direct link to Acris document. link

In the third, Fairstead and Invesco through the entity Bronx Preservation Holdings LLC acquired an interest from Property Resources Corporation through the entity F&J Development Associates, LLC valued at $35.0M for 72-unit rental (D7) at 1551 Shakespeare Avenue in Morris Heights, Bronx, 38-unit rental (D9) at 1717 Bryant Avenue in East Morrisania, Bronx, and 37-unit rental (D9) at 1662 Vyse Avenue in East Morrisania, Bronx.
The deal closed on December 10, 2021 and was recorded on January 3, 2022.
The 12 properties have 464,162 square feet of built space and 72,231 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $75 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.)

Direct link to Acris document. link

In the fourth, Fairstead and Invesco through the entity Bronx Preservation Holdings LLC acquired an interest from Property Resources Corporation through the entity Dcg Monterey Avenue LLC valued at $20.3M for 54-unit rental (D1) at 2019 Monterey Avenue in Tremont, Bronx, 45-unit rental (D7) at 551 East 178th Street in Tremont, Bronx, and 38-unit rental (D9) at 1665 Vyse Avenue in East Morrisania, Bronx.
The deal closed on December 10, 2021 and was recorded on January 3, 2022.
The 11 properties have 376,036 square feet of built space and 35,342 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $54 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.)

Direct link to Acris document. link

In the fifth, Fairstead and Invesco through the entity Bronx Preservation Holdings LLC acquired an interest from Property Resources Corporation through the entity F&J Development Associates, LLC valued at $16.6M for 102-unit rental (D1) at 955 East 163rd Street in Longwood, Bronx, 161-unit rental (D9) at 975 Tiffany Street in Longwood, Bronx, and 82-unit rental (D1) at 1710 Andrews Avenue South in Morris Heights, Bronx.
The deal closed on December 10, 2021 and was recorded on January 3, 2022.
The four properties have 459,358 square feet of built space and 60,931 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $36 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.)
Over the past five years, there have been 5 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 2 major renovation applications including a certificate of occupancy change (A1) filed with a total estimated value of $2,000. There were 3 renovation/alteration projects (A2) applied for with a total estimated value of $173,300. One of the projects were to change the building from a J-2 to a R-2.
The owners according to the Department of Housing Preservation and Development includes David Gartenlaub, head officer and Michael Nowlin, agent. The business entities are Prc Mgmt Co Llc and Prc Andrews Avenue Llc.

Direct link to Acris document. link

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