Cammeby's Finalizes UES Apt. Deal

NEW YORK CITY-Manhattan's largest multifamily sale of the year thus far has closed, with Cammeby's International Ltd. acquiring the Monterey on the Upper East Side for $252 million, or $482,759 per unit, from the Related Cos., according to Real Capital Analytics. GlobeSt.com's calls to Related for comment were not returned by deadline Monday afternoon. Cornerstone Real Estate Advisors has provided $155 million of acquisition financing in a deal arranged by Meridian Capital Group.

When the sale of the 522-unit rental property at 179 E. 96th St. went into contract this past April, Bloomberg quoted Doug Harmon, senior managing director at Eastdil Secured, as saying, “Manhattan, high-quality, institutional, residential, rental real estate never goes out of favor.” He added that prospective buyers ranged from condominium developers to pension funds. “Because of Monterey's size, spacious apartments, spectacular views and full amenity package, it priced equally well to converters as it did to the rental-building buyers,” Harmon said. Eastdil marketed the 29-story apartment tower on behalf of Related.

Cornerstone provided the 12-year, fixed-rate first mortgage at 3.78% on behalf of an institutional investor. Meridian managing director Abe Hirsch and SVP Zev Karpel, both based in Meridian's New York City headquarters, negotiated the loan.

?“One of the unique drivers of the financing structure for this transaction was the 80/20 regulatory agreement that burns off over the term of loan which necessitated the unconventional 12-year term,” Hirsch says in a release. Bloomberg reported that 20% of the Monterey's units must remain affordable until November 2019, when the mortgage financed with tax-free bonds through the 80/20 program mature.

The Monterey was completed in 1992 and renovated in 2008. Along with the residential units, the Monterey contains a 209-space parking garage and 3,375 square feet of fully leased retail space. The apartment component is currently 96% occupied.