In our last post, we highlighted a future potential trend that the residential rental market may see some relief over the next year. Indeed, it remains to be seen given how construction of multifamily units may not outpace demand.
Nevertheless, it still signals that the market for these buildings is very strong. One transaction in Queens exemplifies this trend. As reported on globest.com, the Saxon Hall building was recently sold. The $136 million transaction was one of the largest this year in the borough.
Treetop Development sold the 419 unit property to a partnership of Madison Realty Capital and Arel Capital. The 503,000 square foot building includes one, two and three bedroom apartments and is one of those coveted mixed use properties that has more than 3,800 square feet of commercial space and a parking garage with 200 parking spaces.
For Treetop, the sale appears to be a great move, given that it paid $85.3 million for the property in 2014. For Arel and Madison Realty, there appears to be great potential stemming from its plans to improve the property. They reportedly intend to renovate and reconfigure a number of the units, enhance curb appeal and expanding the amenity package applicable to choice residents. It is unknown how much the renovation plan will cost.
The project also exemplifies the need for experienced legal counsel to make such a transaction successful. The report did not specify how the purchase would be financed, but skilled real estate attorneys can help investors secure the right package to make an investment.