Farallon Capital, Fetner pay $75M to BlackRock for 155-unit rental in Yorkville

UPDATED 9:45 a.m., July 12, 2024: Farallon Capital Management and Fetner Properties through the entity 85 East End Owner, LLC paid $75 million to BlackRock through the entity East End Tower LLC for the 155-unit residential elevator building (D6) at 85 East End Avenue in Yorkville, Manhattan.
The deal closed on June 18, 2024 and was recorded on June 21, 2024. The property has 169,386 square feet of built space and 55,572 square feet of additional air rights for a total buildable of 224,990 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $442 and the price per buildable square foot is $333 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 September 30, 2006, for $100.5 million. The signatory for BlackRock was Jeff Brown. The signatory for Farallon Capital Management was Richard B. Fried. The Commercial Observer reported on the sale on Friday. 

The property has 155 residential units and two commercial units. Richard ‘Rocky’ Fried is managing member off Farallon.
Farallon Capital Management financed the purchase with a $34.7M acquisition loan from Brookfield Properties.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Farallon Capital Management had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller BlackRock had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes John Kent, head officer and David Sorise, agent. The business entities are Pinnacle City Living and East End Tower Llc.

The property

The residential elevator building with 155 residential units in Yorkville has 169,386 square feet of built space and 55,572 square feet of additional air rights for a total buildable of 224,990 square feet according to a PincusCo analysis of city data. The parcel has frontage of 127 feet and is 198 feet deep with a total lot size of 22,499 square feet. The lot is irregular. The zoning is R10A 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 $50.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $1,000 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of six of the seven commercial properties representing 178,531 square feet of the 295,711 square feet. The largest owner is Vito Verni, followed by City Of New York and then BlackRock.
There are no active new building construction projects on this tax block.

The majority, or 60 percent of the 295,711 square feet of built space are elevator buildings, with specialty buildings next occupying 40 percent of the space.

The seller

The PincusCo database currently indicates that Blackrock owned at least two commercial properties with 414 residential units in New York City with 459,868 square feet and a city-determined market value of $114.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are elevator properties. They are all located in Manhattan.

Correction: An earlier version of this post did not include Fetner Properties as a buyer.

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