HGI Buys Second UES MF Property

NEW YORK CITY-Just two months after Harbor Group International acquired a multifamily property on the Upper East Side, it has picked up another one. Affiliates of the company have bought a 37-unit apartment building at 162-164 E. 82^nd St., between Lexington and Third avenues, for $16.2 million. The seller was Silverstone Property Group.

Rosewood Realty's Aaron Jungreis, president and owner, as well as broker Jonathan Birnbaum brokered the deal on behalf of Silverstone. HGI handled the deal internally. The company plans to spend another $950,000 on the property for structural, mechanical and façade improvements, as well as upgrades to common areas and amenities. In addition, capital will be available to renovate rent-stabilized units as they become available, the company asserts.

Previously, HGI bought 334-338 E. 79^th St., between First and Second avenues. HGI purchased the 46-unit apartment property for $20.5 million and is giving the building a  $1.2 million renovation.

The company has several reasons to be bullish on the area, HGI president T. Richard Litton, Jr. tells GlobeSt.com. “The UES apartment rental market is very strong. We expect those market fundamentals to continue, and 82^nd street is particularly well positioned to benefit from market fundamentals as rent stabilized units become available as market rent units.”

Adds chairman & CEO Jordan Slone, “We believe strongly in this market, and that our renovation plan along with increased operating efficiencies will provide the best possible value to our investors.”

Built in 1920, the property includes two contiguous five-story walk-up buildings totaling 37 units. It features various floor plans with an average size of 510 square feet. Located between Third and Lexington Avenues on the south side of the street, the property is close to Central Park and to the 4/5/6 train, as well as the bustling 86^th street retail corridor.