NEW YORK CITY-Furthering its expansion into the New York Citymarket, Colorado-based apartment operator and investment firmArchstone has acquired Eastbridge Landing, a209-unit, 22-story rental tower from sellers MadisonInternational Realty and RFR Holdingthrough an Archstone sponsored partnership, the company unveiledTuesday morning. The site, located at 377 E. 33rd St.,sold for a purchase price of $131 million.

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The acquisition comes on the heels of Equity LifeStyleProperties Inc. trying to buy a 26.5% interest inArchstone for $1.3 billion, asGlobeSt.com previously reported. The deal nowbrings Archstone’s total apartment portfolio in the NewYork-metropolitan area to 14 properties. It currently owns andmanages 10 rental towers in Manhattan, one in Brooklyn and one onLong Island. “It will increase our presence in New York, one of ourcore markets,” says R. Scot Sellers, CEO ofArchstone, in a statement. “We are extremely excited about beingback in the business of acquiring incredible apartment communitiesin the best neighborhoods in the country.”

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According to spokeswoman for Madison International Realty, thetiming was “appropriate” for Madison and RFR to complete thetransaction because of the “favorable investment climate” forrental properties in New York City. Madison originally acquired aninterest in Eastbridge from RFR and its partners in 2007. RFRretained an ownership stake and has managed the asset since thattime.

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The transaction, however, contained some nuances. The ownershipwas not a seller entering the market, but received a great deal ofinvestor interest from several interested parties. “There was noshortage of capital opportunities around this asset, but Archstonehas such a terrific track record and reputation that we feltcompelled to explore a transaction with them,” says DaveKarson, managing director of Cushman &Wakefield Sonnenblick Goldman, which served as exclusiveadvisor to the sellers. Karson led the team on the transaction withHelen Hwang and Nat Rockett frominvestment sales and Kate Pelet, MarkEhlinger and Michael Henry. “We quicklybecame convinced that Archstone was the right execution, and we’reall very pleased with the result."

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The property, which buffers the Murray Hill neighborhood, islocated in close proximity to large employers such as the New YorkUniversity Langone Medical Center and the United Nations. Rentsrange from $2,500 for studios and up to $5,400 for two-bedroomunits, according to StreetEasy.com. It is 95% occupied, accordingto Real Capital Analytics.

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RCA data shows that Anglo Irish Bank Corp. wasassigned to refinance the first mortgage on the property for $100million in December 2006. Calls requesting the current financialstatus of the building were not returned.

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