Related Companies sells One Union Square South

MKF Realty, acting as an advisor for an unnamed multigenerational family investor, is set to close on the acquisition of One Union Square South from Related Companies for $218 million, according to TheRealDeal. The 27-story building spans 174,000 SF, and contains 240 units, plus a retail component leased to Best Buy, Nordstrom Rack, and Regal Cinemas.

• Acquisition financing: Fannie Mae is providing about $120 million to finance the deal.

• Worth Noting: Related developed the building in 1998, and 20 percent of the building’s residential units are regulated under the terms of a 421a agreement that’s expiring soon. MKF is working to extend the tax exemption for another 15 years. 

• Brokers: Meridian Capital Group’s investment sales team of Helen Raki Hwang and Brian Szczapa negotiated the sale. Meridian’s David B. Schechtman and Brian Gladstone procured the buyer.

• Be Smart: The deal went into contract in June, and reportedly works out to a cap rate in the 4 percent range. [TRD]