White Plains Apartment Complex Sells for Reported $19M

WHITE PLAINS, NY-A Pennsylvania-based multifamily property owner has acquired Lexington Place Apartments in downtown White Plains, a 16-story, 124-unit luxury rental complex, formerly known as Plaza 25.

Local commercial brokerage sources say the deal is valued at approximately $19 million. Officials with Korman Communities Inc. and CB Richard Ellis, which brokered the sales deal, refused comment on the purchase price.

CB Richard Ellis Tri-State Investment Team led by Jeffrey R. Dunne, and partner Jim Tully represented the seller, Archstone-Smith Operating Trust, in the negotiations. The CB Richard Ellis team also secured the buyer, a subsidiary of Korman Communities of Plymouth Meeting, Pa. The Lexington Place property also includes 4,700 sf of ground level retail space.

Archstone-Smith of Denver acquired the property at 25 Martine Ave., from Mack-Cali Realty in January 2002 for $18.1 million. The 25 Martine Ave. property, along with 50 Main St., and 1-11 Martine Ave. comprise the Westchester Financial Center. Mack-Cali Realty owns 50 Main St. and 1-11 Martine Ave. The three properties share a 1,043-space parking structure.

“The location of Lexington Place, particularly its proximity to the train station, is irreplaceable and a major drawing point for tenants looking to commute to Manhattan,” CB’s Dunne says.

Tully adds, “The price per unit on this sale is significantly below construction costs and provides the buyer with some flexibility in terms of capital investment and the positioning of the property.”

Brad Korman, president of Korman Communities, notes its purchase marks the 90-year old privately held firm’s entrance into the New York market. The company owns and operates 10,000 multi-family units in seven states (Georgia, North Carolina, Virginia, Delaware, Pennsylvania, New Jersey and New York).

Korman said the firm plans to spend $2 million in capital improvements to Lexington Place, including upgrades to the individual units, hallways and common areas. In addition, the company hopes to convert about 60 units, when they become available, into furnished apartments that can be marketed for corporate or individual use. Lexington Place is currently 95 percent occupied.

He added that the company is looking to add to its multi-family property portfolio in the New York metropolitan area.

“We’re hoping to add $200 million to $300 million in new properties this year. If we could do all of it in that (New York metro) market we would.