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]
