Teaneck-based Treetop Development LLC announced Friday that it has completed a $60 mlilion sale of 12 mixed-use apartment buildings in Manhattan’s blossoming Upper West Side neighborhood.The properties were originally purchased by Treetop in 2012, and the sale price represents a 31 percent internal rate of return.
According to the announcement, Treetop sold the 153 apartments and 23 commercial space portfolio to Orbach Group, a New Jersey-based real estate investment firm.
“The market for multifamily buildings stretching from 96th Street to 115th Street has been strengthening in recent years as a dramatic rise in rents has made apartment assets an institutional class that investors are actively seeking to own,” Adam Mermelstein, a principal of Treetop Development, said in a prepared statement.
“Two years ago, we saw the potential growth of this area and began identifying properties in premium locations that could be purchased at value-added prices that permitted us to perform significant capital improvements and still maintain a high rate of profitability. Offering modern homes at competitive monthly rates kept occupancy rates near 100 percent making these buildings even more attractive and enabling us to achieve a very favorable return on our investment,” he said.
Treetop is currently in contract on more than 300 units in Manhattan’s Central Harlem, Washington Heights and Inwood.
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