Stonehenge51.

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NEW YORK CITY- A venture comprised of real estate firmStonehenge NYC, retired Major League Baseball player Alex RodriguezA-Rod Corp and real estate agency the Modlin Group have announcedthe acquisition of 340 East 51st, a 114-unit residential apartmentbuilding in Midtown East. Savills brokered the property sale, whichsold for $66 million or $707 per square foot.

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The property, formerly known asthe Allen House, was constructed in 1965. At the time, the LondonFamily who owned the property built it 14 stories tall and havesince rebranded the property as Stonehenge 51. 

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Stonehenge NYC will manage thebusiness plan and budget for Stonehenge 51.  Part of theinvestment strategy includes a new branded concept such as theStonehenge Reserve, which will offer tenants the flexibility ofleasing fair market units for terms of 6-months or more or theleasing of fully furnished apartments. David Krantz and PaulLeibowitz of Savills broked the transaction. 

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"We have noticed a strong trend,particularly among millennials, of a need for more flexible leaselengths and furnished options. Due to this, we are delighted tointroduce our new Stonehenge Reserve concept at Stonehenge51.  Should they desire – a tenant can simply move in withnothing but their clothing," said Ofer Yardeni, chairman and CEO ofStonehenge NYC, in a prepared statement. "I am thrilled to be doingour first deal with Alex and Adam and also introducing StonehengeReserve. This will be the first of many deals together, as wecontinue to be bullish on a market that has consistently providedgreat investment opportunities for rental apartments."

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The investment strategy for theproperty was complimentary to the A-Rod Corp portfolio, saidRodriguez, who has been a real estate investor for more than 20years. "With Adam [of the Modlin Group] and Ofer as my partners, wehave an all-star team that has enjoyed an enviable track record inowning and managing Manhattan rental apartments for more than twodecades."

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Adam Modlin heads the ModlinGroup and said the venture's formation of Stonehenge 51 will enjoythe dense location in Midtown East, which is expected to maintainhigh occupancy levels. "With tech companies such as Googleexpanding its footprint in NYC and Facebook taking 1.5 millionsquare feet in NYC, there is a growing demand for quality rentalapartments," he said. 

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The new joint venture is a newstep for Rodriguez, who has typically invested in a range ofmultifamily assets. 

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According to a recent GlobeSt.com article, Real estate has been a mainstay of his business,which has invested about $400 million of equity in buyingmultifamily units in secondary markets through Fannie Mae. "Theyare nothing fancy, but our returns to our LPs have been north of30%." But they haven't been all wins.

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One "strike out" he mentionedincludes a 500-unit portfolio out of Tampa at $60,000 a door thatovernight was worth about $42,000 per door. "We ended up cutting adeal with the bank, but I had people at the table with me withexperience and a great track record."

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Mariah Brown

Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.