The seller, Sam Zell believes the market has reached its peak
The Dermot Company and PGGM have closed on its acquisition of 101 West End Avenue from Sam Zell’s Equity Residential for $416 million. The residential building spans 631,204 square feet, and contains 503 apartments. The Real Deal reported the deal was in contract this past July.
Financing breakdown: The duo secured $260 million in acquisition financing from Helaba. In addition to a $137.7 million new loan, the lender also assumed the $122.3 million unpaid balance from a 2013 mortgage provided by Fannie Mae and the Bank of New York Mellon.
Existing cap rate is deceptive… With the property’s 421-tax abatement expiring in four years, the buyers are betting that increases in rents will compensate for the tax increases. The property is located between West 64th and West 65th Streets.
Flashback: Equity Residential acquired this building in 2013 when it bought 60 percent of the Archstone-Smith’s assets. Archstone paid $209 million in 2002 from Tishman Speyer.