Madison International Realty pays $27.2M to Urban American as part of larger multifamily acquisition

On Friday, Ronald Dickerman’s Madison International Realty recorded $27.2 million in a pair of acquisitions from New Jersey-based workforce housing landlord Urban American Management. This group of buildings follows on $51 million in multifamily properties that Madison purchased from Urban American, which were recorded the day before.

These transactions are part of a recapitalization of a $275 million, 1,400-unit affordable housing portfolio previously owned and operated by Urban American with backing from an investment fund, Madison International said in a press release.

“The portfolio previously was a piece of an Urban American closed end fund that was nearing the end of its life,
and Madison provided the underlying limited partners with liquidity,” the statement said. Urban American will continue to manage the properties.

In the first of the purchases recorded on Friday, Madison International Realty through the entity 213 Bennett Avenue Owner, LLC paid Urban American Management’s 213 Bennett Avenue, LLC $15.0 million for 213 Bennett Avenue in Washington Heights. The deal closed on December 20, 2019, and was recorded on January 3, 2020. The transaction consists of 1 parcel, including the tax class multifamily, semi-fireproof (without stores) (D1) and containing 72 residential units. The property is 63,144 square feet. The parcel(s) have total development potential of 63,144 square feet.
The sale price per unit is $208,333.

The last time the property sold was June 3, 2010, for $9,594,000.

Over the past five years, there have been 2 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 2 renovation/alteration projects (A2) applied for with a total estimated value of $900,215.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link

In the second transaction, Madison International Realty through the entity 170 North 5th Street Owner, LLC paid Urban American Management’s 170 North 5th Street, LLC $11.2 million for 170 North 5th Street in Williamsburg. The deal closed on December 20, 2019, and was recorded on January 3, 2020. The transaction consists of 1 parcel, including the tax class multifamily, over six families without stores (C1) and containing 16 residential units. The property is 14,504 square feet. The parcel(s) have total development potential of 14,504 square feet.
The sale price per unit is $700,000.

The last time the property sold was January 7, 2011, for $8,672,393.
The DOB issued a new construction (NB) initial temporary certificate of occupancy for the building with 8 residential (or hotel) units on August 9, 2012.

Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link

Clarification: Urban American Management will retain management of the properties.