$94.5 Million Chelsea Multifamily portfolio Sale Signals NYC Market strength
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In a significant transaction reflecting the enduring strength of the New York City real estate market, a 13-property multifamily portfolio in the desirable Chelsea neighborhood recently changed hands for $94.5 million. The sale, facilitated by Marcus & Millichap (NYSE: MMI), underscores the continued demand for investment properties in prime Manhattan locations.
The Chelsea Collection, encompassing 147 units across 98,000 square feet, represents one of the largest multifamily portfolio sales in Chelsea this year. The properties, situated conveniently between West 19th and West 29th Streets, are clustered together, offering investors a highly desirable, consolidated asset.
“Portfolios of this nature rarely trade in New York, and this was the fourth portfolio transaction we closed in the last 12 months with assumable financing,” said Joe Koicim, based in Marcus & Millichap’s Manhattan office. “The Chelsea Collection is comprised of quality multifamily assets located in one of the top residential sub-markets in the city that traded for just under $1,000 per square foot. The portfolio’s unique combination of location,quality,and future upside made it an attractive asset for investors looking to capitalize on New York’s market rebound.”
Koicim, along with Logan Markley, Chris Dintrone, and Kory Barbanel of the NYM Group at Marcus & Millichap, represented the seller, Josh Gotlib’s BlackSpruce Management, and successfully secured an out-of-state buyer. The transaction also involved the seamless assumption of an existing CMBS loan, expertly managed by John Wood and Rob Verrone of Iron Hound Management.
“With our team’s specialization in this asset type and our ability to attract outside capital, we were able to procure The Westover Companies, a well-qualified, experienced, real-estate investment group to step up and execute this portfolio in a timely manner,” added koicim.
The success of this deal further highlights the expertise of the Marcus & Millichap team. John Horowitz, head of the firm’s Northeast Division, praised Koicim’s accomplishments:
“Joe has had another phenomenal year,” said Horowitz. “He has grown a business and a team at Marcus & Millichap that is built around his ability to develop strong personal relationships with owners. Then, once hired, Joe delivers repeatedly, resulting in one of the strongest brands in the market. Along with this 13-property multifamily closing in Chelsea, Joe and his team closed on the sale of 95 buildings in NYC in 2024, valued at over half a billion dollars, including closings with three prominent New York real estate families. Joe did it all amid one of the most challenging New York city markets in years.”
This significant sale reinforces the ongoing strength and resilience of the New York City multifamily market, attracting significant investor interest despite broader economic fluctuations. The deal serves as a strong indicator of continued confidence in the city’s real estate sector.
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading commercial real estate investment services firm with a national reach. As of December 31, 2023, the company boasted a substantial portfolio of investment sales and financing transactions.
Marcus & Millichap: A Commercial Real Estate Giant’s 2023 Performance
Marcus & Millichap, a leading commercial real estate brokerage firm, reported a strong year in 2023, solidifying its position in the industry. With a nationwide network spanning over 80 offices, the company provides a extensive suite of services for both buyers and sellers of commercial properties.
Their services extend beyond simple brokerage, encompassing in-depth market research, expert consulting, and strategic advisory services tailored to individual client needs.This holistic approach allows them to navigate the complexities of the commercial real estate market effectively.
Record-Breaking Year for Transactions
2023 proved to be a remarkably triumphant year for Marcus & Millichap. The firm closed a staggering 7,546 transactions, generating a total sales volume of approximately $43.6 billion. This impressive performance underscores the company’s market dominance and its ability to connect buyers and sellers in a dynamic and competitive landscape.
This level of activity reflects not only the strength of the commercial real estate market but also Marcus & Millichap’s expertise in facilitating complex deals and providing unparalleled service to its clients. The sheer volume of transactions speaks to the trust and confidence placed in the firm by industry professionals and investors alike.
Impact on the U.S. Economy
The success of Marcus & Millichap has significant implications for the broader U.S. economy. Commercial real estate transactions play a crucial role in driving economic growth, impacting job creation, and influencing investment patterns across various sectors. The firm’s substantial sales volume contributes directly to this economic activity, supporting progress and investment in key areas nationwide.
The robust performance of the commercial real estate market, as reflected in Marcus & Millichap’s results, signals a positive outlook for economic growth and continued investment in key sectors such as retail, office, and industrial properties. This activity is a key indicator of overall economic health and confidence.
For more information about Marcus & Millichap and their services,visit www.MarcusMillichap.com.
$94.5 Million chelsea Multifamily Portfolio sale: A Sign of Confidence in NYC Real Estate
The recent sale of a 13-property multifamily portfolio in Manhattan’s Chelsea neighborhood for $94.5 million highlights the enduring strength of New York City’s real estate market, even amidst broader economic uncertainty. Known as the “Chelsea Collection,” this portfolio encompasses 147 units across 98,000 square feet and represents one of the largest multifamily deals in Chelsea this year. This transaction, brokered by Marcus & Millichap, showcases both investor appetite for prime Manhattan properties and the expertise of the firm’s specialists in navigating complex sales.
A “Rare” Portfolio in a Prime Location
World-Today-News Senior Editor: Joe, congratulations on closing this remarkable deal. What made the Chelsea Collection such a unique opportunity?
Joe Koicim,NYM Group at Marcus & Millichap:
Thanks! This portfolio was truly special. You rarely see this many quality multifamily assets clustered together in such a desirable location. The Chelsea Collection consists of 13 buildings situated between West 19th and West 29th Streets, right in the heart of a thriving residential sub-market. That kind of concentration in a prime Manhattan area is highly sought after by investors.
Assumable Financing and Investor Interest
World-Today-News Senior Editor: You mentioned that the sale included the assumption of an existing CMBS loan. Can you elaborate on how that factored into the transaction?
Joe Koicim: Absolutely. The ability to assume the existing CMBS loan was a significant advantage. It streamlined the financing process for the buyer and made the deal even more attractive. This, combined with the portfolio’s strong fundamentals and location, drew interest from a wide range of investors, ultimately leading us to secure an out-of-state buyer.
World-Today-News Senior Editor: This sale involved a team effort on your end. what role did meir, Chris, and Kory play in making this deal happen?
Joe Koicim: I couldn’t have done it without them. Meir,Chris,and Kory are key members of the NYM Group at Marcus & Millichap. They brought their expertise in market analysis,due diligence,and negotiation to the table,wich was crucial in navigating the complexities of this transaction.
Confidence in the New york City Market
World-Today-News Senior Editor: This sale, along with your team’s other successes, suggests a robust appetite for New York City real estate. What’s your overall outlook on the market?
Joe Koicim: New York City real estate always attracts investors. While there have been some economic headwinds,deals are still getting done,and we’re seeing continued confidence in the market’s long-term potential. The Chelsea Collection is a prime example – this wasn’t just a one-off. We closed on 95 buildings in NYC in 2024 alone, totaling over half a billion dollars in sales. That includes deals with three prominent New York real estate families, highlighting the trust and connections we’ve built.
World-Today-News Senior Editor: John horowitz, head of Marcus & Millichap’s Northeast Division, praised your team’s performance this year. What are your thoughts?
Joe Koicim: We’re proud of the results we’ve achieved. This success comes from building strong relationships with owners, understanding their needs, and delivering results. Our team is committed to providing remarkable service and expertise to guide clients through every step of the real estate investment process.
