NEW YORK CITY — Denver-based multifamily investment trust UDR has reached a definitive agreement to acquire a high-rise apartment building in Manhattan's Financial District for $260.8 million. The seller was Witkoff Group.
The property is 10 Hanover Square, a 23-story tower located on Hanover Square between Water and Pearl streets. Formerly the corporate headquarters for Goldman Sachs and Kidder Peabody, the building was converted into luxury apartments in 2005. It now offers 493 homes in a range of studio through three-bedroom units averaging 708 square feet.
Amenities for the community include 24-hour concierge service, two lounges and a rooftop deck. The ground floor of the building contains 41,650 square feet of retail space and is anchored by the 28,000-square-foot Xtreme Gym New York. Other retail tenants include Fresco on the Go Restaurant, The Original Soupman Restaurant, Apple Bank and Starbucks Coffee.
UDR will fund the purchase primarily through the assumption of a $192 million mortgage. The financing carries a 5.93 percent fixed interest rate and requires interest-only payments through December 2012. It matures in December 2015. UDR will also pay Witkoff approximately $64.3 million in operating partnership units and approximately $4.5 million in cash.
“The expansion of our portfolio into Manhattan reflects our desire to own and operate apartment homes in markets that have the best growth prospects based on favorable job formation and low home affordability,”said Tom Toomey, president and CEO of UDR, in a statement. “With total revenue per home of $3,000 per month and only six years following the completion of a major redevelopment, the acquisition of 10 Hanover Square will further enhance the overall quality of our portfolio.”
— Coleman Wood