X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Riverbank West, a 44-story, 418-unit luxury residential building in Manhattan’s West 42nd Street Corridor, is on the market. The local office of Holliday Fenoglio Fowler LP has been named to market the building, which is expected to trade around $200 million, HFF’s senior managing director Joe Morningstar, tells GlobeSt.com.

Morningstar, along with managing director Andrew Scandalios, will lead the investment sales team on behalf of the owner. Morningstar tells GlobeSt.com that the building has commanded “a lot of interest” from potential buyers thus far, but he didn’t disclose any identities at this time.

He explains that he cannot disclose the seller’s identity at this time, but public records indicate that Massachusetts Mutual Life Insurance Co. is the seller. Morningstar says that the reason for selling is “to take a profit…pure and simple.” He notes that although there is no set bid date, it should most likely be within three to four weeks.

Riverbank West is located at 560 W. 43rd St. in the West 42nd Street corridor, a residential submarket comprised primarily of newly constructed luxury rental and condominium product. The property, which historically has enjoyed occupancy in the high 90%-range, has a private driveway and plaza and 85% of the apartments have balconies.

Morningstar says that the building presents a “unique and very rare opportunity to acquire a ‘core’ apartment building in Manhattan, the most dynamic residential rental market in the country. The stability of the property’s revenue streams can be further enhanced through the execution of a number of ascertainable value-add strategies.”

Barbara Denham, research manager and economist for Eastern Consolidated’s New York City operations, who is not involved in the marketing efforts, tells GlobeSt.com that Riverbank West follows a strong trend of new construction in the West 40s and 30s. “That immediate area is desirable due to its proximity to midtown, but these West 40s properties are also marketed on the hope of an extended No. 7 subway line and the future plans for Hudson Yards.” She continues that “to this extent, the developers are putting the horse before the cart but with enough of a critical mass–and the neighborhood is approaching that critical mass level–the City will be forced to extend the No. 7 line assuming residents will create an outcry if they do not.”

Denham continues that “one of the programs the City discussed to finance the No. 7 train was tax-incremental financing. TIF’s suggest that the tax revenues generated by the ancillary development surrounding a project will or should pay for the project itself. The abundance of new housing suggests that the TIF’s are already at work.” Another reason why developers have focused on this neighborhood is because it serves as one of the last frontiers for new development in Manhattan, Denham says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.