Selling multifamily with onerous regulations, in a pandemic, is not an easy task
Adelaide Polsinelli, Vice Chairman of Compass, a publicly traded, technology-driven, real estate platform, along with Udi Eliasi also of Compass, have closed on the sale of a West Village residential property at 661 Washington Street, one block from the Hudson River and, in the heart of Manhattan’s affluent West Village neighborhood.
The final purchase price was $8,400,000, approximately $840 per square foot with a projected cap rate of 4.9%.
The property contains a variety of renovated one, two and three bedroom apartments. It is nestled between idyllic West 10th Street and famed Christopher Street. Surrounded by tree lined streets and charming townhouses, 661 Washington Street is a well-kept secret gem. “ You don’t get a better location than this one,” commented Eliasi.
The property is located midblock, on Washington Street, adjacent to the prestigious “Village Community School” and directly across the street from the one of the most exciting, award winning, condominium buildings in the city, “150 Charles Street”. The most recent notable transaction in the building was the sale of five bedroom apartment for $45 million by Barry Sternlicht, the founder and CEO of Starwood Capital Group,.
“This neighborhood is best known for its concentration of some of the city’s premiere residential properties,” noted Polsinelli. “With steady confidence and investment of capital, even in a pandemic, the West Village will always be a solid residential destination,” added Polsinelli.
However, getting this deal to the finish line was not without challenges. The Housing Stability and Tenant Protection Act of 2019, along with Covid-19dealt multifamily landlords a one-two punch. As if the layers of onerous, regulations added on top of an already overly controlled asset class, weren’t difficult enough, the devastation unleashed by Covid-19 was worse than imaginable. Since then, the values of rentstabilized multifamily properties went into free fall as the ability for owners to turn a profit was no longer within reach.
In addition, the lack of buyer interest, added further uncertainty to an already depressed market. After careful and diligent research, Polsinelli found an investor who understood the new landscape and appreciated the fact that he was buying an asset that would not be attainable at any other time in the real estate cycle. He realized this was a once in a cycle opportunity and moved swiftly and expertly, performing months of due diligence in record time, in order to close.
“As we turn the corner on Covid, more investors will be placing bets on real estate”, added Polsinelli. “What better time to buy, than at the bottom of a ten-year cycle?” Polsinelli concluded.
About Polsinelli: With over 30 years of experience, Polsinelli has sold over 1,500 properties, valued at over $40 billion in every asset class including multifamily, retail, office, development, note sales, air rights, partnership interests, unsold shares and retail condos. She has sold over $1.4 billion in the last few years, spanning NYC, Miami, Boston, Chicago and most of the northeast corridor. Prior to joining Compass, she was a Principal at the now defunct, Eastern Consolidated.
About Compass: is a technology-driven real estate platform dedicated to creating a seamless and intelligent buying, selling, and leasing experience. Combining the country’s top agents, proprietary market insights, and integrated mobile and web technologies, Compass is developing the future of real estate decision-making. With $1 Billion in revenue, and $35 Billion in sales volume, Compass has 238 offices with locations in 122 markets, including New York City, Washington DC, Boston, Miami, Los Angeles, Santa Barbara, the Hamptons, and Aspen. New funding fuels international expansion, enhanced technology developments for agents and consumers. Compass was founded by Ori Allon, who sold two previous companies to Google and Twitter, and business partner Robert Reffkin, a former White House Fellow and Chief of Staff to Goldman Sachs’ President & COO.