New Rochelle Apartment Tower Trades for Nearly $260M
John Jordan | December 2018
NEW ROCHELLE—A partnership of Azure Partners and Harbor Group International, LLC have acquired the 40-story Halstead New Rochelle Metro North apartment tower here for $259.4 million.
The tallest residential building in Westchester County was sold by the DSF Group, which acquired the 588-unit apartment building in 2013 for more than $210 million.
Holliday Fenoglio Fowler, L.P. represented Boston-based DSF Group in the sale. The brokerage firm also procured the buyers, Norfolk, VA-based Harbor Group International and Azure Partners, which is headquartered in New York City.
The property, built in 2007, is currently 95.6% occupied. The acquisition continues HGI’s focus on the New York metropolitan area, where the company now owns $1.5 billion in investment properties, including CBD office, urban retail, industrial, multifamily and debt investments.
“This property continues HGI’s strategy of acquiring class A assets in top tier markets with great demographics and strong employment drivers,” said T. Richard Litton, Jr., president of HGI. “New Rochelle is a New York City metro commuter hub with easy access to multiple forms of transportation. The property has been maintained to a high standard and has a wide assortment of quality amenities.”
DSF President Josh Solomon said of its sale of the residential tower, “We are very pleased with the sale of Halstead New Rochelle. This is another successful execution of our value-add strategy to acquire and reposition transit-oriented multifamily properties in ring communities.”
The residential tower features original-finish units that offer natural lighting. HGI stated that it plans to implement a unit interior renovation program to improve the property’s competitive positioning in the market. HGI anticipates implementing upgrades in 375 units, including updated cabinetry, stainless steel appliances, updated lighting and hardware, 6-panel doors and NEST thermostats. No financial information was released on the planned capital improvement program at the property.
DSF upon purchasing the property in November 2013, implemented an amenity renovation program, including the delivery of a 40th floor, state-of-the-art sports club, which includes cardio machines, free weights, weight machines, yoga studio, spin room and lounge. Additional amenities at the property include a resort-style swimming pool, resident lounge, landscaped courtyard, coffee bar, dog park, conference room, business center, billiards room and nearly 6,000 square feet of on-site, ground-floor retail.
The HFF investment advisory team representing the DSF Group in the transaction included Jose Cruz, Stephen Simonelli, Kevin O’Hearn, Michael Oliver and JB Bruno, along with Andrew Scandalios.
“The asset’s visibility and location in the market helped drive demand from all buyer types, including domestic and offshore equity groups,” Cruz stated. “Also, the ability to add value by renovating the units was a key driver for the investor pool.”
The DSF Group has more than $2.6 billion invested in real estate since 2000 and has offices in Boston and Washington D.C.
Azure Partners is a real estate private equity firm that since its founding in 2010, has purchased in excess of $1.6 billion of assets, including more than 8,000 multifamily units and 700,000 square feet of retail.
Harbor Group International is a private real estate investment and management firm, which controls a portfolio of worldwide assets valued in excess of $7.8 billion. In addition to its Norfolk headquarters, HGI also has offices in New York, Baltimore, Los Angeles and Tel Aviv. The company’s real estate holdings include five million square feet of commercial properties and in excess of 30,000 apartment units.