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Midtown Investor Picks Up Stonehenge Village Rentals for $287M

Bought for a “Long-Term Hold,” Property Leaves the Hands of SL Green, Ivanhoe-Stonehenge Partnership
April 13, 2018
SL Green has sold off yet another part of its Stonehenge portfolio.

For $287 million, A&E Real Estate Holdings has purchased Stonehenge Village, the three-tower, 420-unit apartment complex in New York City, from a joint-venture partnership between SL Green, Ivanhoe Cambridge Inc. and Stonehenge Partners.

Despite the rental complex trading for 18 times it annual rent roll, it transacted at a tight 3.4% cap rate, according to Rosewood Realty Group, which brokered the sale. The final sales price amounts to $683,000 per unit.

This is not the first Stonehenge property that SL Green has exited this year. In late March, a 53-unit East Harlem rental property it owned in conjunction with Stonehenge Partners was sold for $44.1 million to a subsidiary of Sweden’s Akelius.

SL Green appears to be stacking its capital as it pursues a $1.5 billion stock repurchase program, a reason it mentioned behind its recent sale of 1745 Broadway for $633 million.

With this Upper West Side sale, the strategic partners scored about $100 million more than originally reported for Upper West side buildings. It was originally thought to be in contract for $180 million.

Rosewood's Aaron Jungreis represented both sides of table, and said A&E, which specializes in multifamily investment, is planning to hold the property for the long-term, citing its below-market rents and convenience to shopping and transportation.

Signature Bank and Mesa West Capital teamed to provide A&E with $145 million in fixed-rate acquisition financing for the deal.

Stonehenge Village is one of 19 properties included in SL Green’s 2015 purchase of a 50-percent stake in Stonehenge’s portfolio, which at the time spanned 2,717 units across 2.87 million square feet. Stonehenge Partners first bought the property in 2005 from West Side Houses for about $100.8 million, or $237,756 per unit, according to CoStar data.
See CoStar COMPS #3282087 and #1040171.

SL Green Realty, Ivanhoe Cambridge and Stonehenge Partners declined to comment for this report.

Situated at 122-198 W. 97th St., Stonehenge Village is just two avenues west of Central Park and walking distance to the MTA 1, 2, and 3 subway lines at 96th Street. Constructed of masonry in 1930, it houses a mix of one-, two- and three-bedroom rentals with an average unit size of 959 square feet.

Please see CoStar COMPS #4196738 for additional information on this latest transaction.

Diana Bell, New York City Market Reporter  CoStar Group   
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