HUBB NYC Nabs Manhattan Multifamily Portfolio for $190M

HUBB NYC is purchasing an 11-building multifamily portfolio spanning the Upper East and Upper West Sides of Manhattan for a price tag of $190 million, a source has told GlobeSt. 

The deal with Denver-based REIT AIR Communities consists of 361 units spanning 209,190 square feet, with the largest properties being 181-199 Columbus, 182-188 Columbus and 464-466 Amsterdam. 

Privately-held HUBB NYC owns and operates free market, rent stabilized and rent controlled homes in the New York City area. AIR Communities spun out of AIMCO last year and will shift its focus away from New York City and into the South and Sun Belt.

A Cushman & Wakefield team consisting of Adam Spies, Adam Doneger, Doug Harmon, Josh King, Kevin Donner, Marcella Fasulo, Michael Collins, Meaghan Philbin and Monica Brendsel brokered the deal.  Cushman & Wakefield declined to comment on the deal.

The Manhattan apartment market has been on a white-hot streak this year, with the third quarter no exception.  A recent report from Brown Harris Stevens notes that the average apartment price increased 17% year-over-year for co-ops and 15% year-over-year for condos after bottoming out at the beginning of this year. Overall, closings are at their highest level in eight years, though average prices are still 11% lower than a year ago thanks to a spate of “super luxury” closings at 220 Central Park South, which BHS analysts say inflated Q3 2020’s numbers.

“Contract signings have remained strong since the spring, which has driven inventory down to the point where many neighborhoods in Manhattan can be characterized as a seller’s market,” Brown Harris Stevens’ CEO Bess Freedman said in remarks. “Buyers can still find value, but the dramatic decline in both time on the market and negotiability make it clear that the fire sale has long ended.”

The multifamily investment sales market in NYC also picked up steam this year, with multifamily deals accounting for 28 of the 51 transactions Avison Young noted in its Q2 roundup of sales in the region. Multifamily deal volume in Q2 rang in at $438 million, a 100% increase off the trailing four quarter average.