NEW YORK CITY—An investment group led by AvalonBay Communities, Inc. has sold Avalon Chrystie Place, a 361-unit multifamily building in which the company owned a 20% joint venture interest. Located at 229 Chrystie St., between Houston St. and the Bowery, the residential asset is home to a Whole Foods store.
Avalon Chrystie Place was sold for $365 million. Subject to the wind-down of the joint-venture, AvalonBay expects to receive net proceeds of $108 million, including $50 million of distributions in respect of its 20% joint venture interest. The company's initial capital investment in the joint venture was $6 million.
The identity of the buyer was unclear at press time. However, in May, the New York Post reported that Ashkenazy Acquisition Corp. had picked up the property for just under $365 million.
Andrew Scandalios, an investment broker with HFF, handled the sales process that began in January, according to the Post. The building is 95% occupied, with 72 of those apartments paying affordable rents.
But sources say both the market-rate units and the 72,300 square-foot Whole Foods lease—which ends in 2028—are now paying below market rents, and will therefore provide ongoing rolling upside, the Post reports. The only two apartments for rent, for example, are an alcove studio with a separate kitchen for more than $3,000 and a two-bedroom for $6,000 per month.
The project was initially developed as a result of AvalonBay and an institutional partner, along with Phipps Houses and retail consultant Williams Jackson Ewing, winning a request for proposals from the city to buy the land.
Developed over 1.33 acres, the tower of the 14-story building is one of the highest in the area and has views to Downtown Manhattan. It includes a fitness center, meeting rooms and roof deck as well as a billiards room, dance studio and other amenities, including the use of a pool. The pool was developed as part of the deal with the city. It is located in a $14 million-plus, 42,000 square-foot multilevel underground complex.
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