David Bistricer’s Clipper Equity sold an 83-unit apartment building with rent-stabilized units in Lincoln Square for $45.5 million, a sharp discount from its previous purchase price.
Clipper Equity sold the property at 10 West 65th Street to a private family, according to a release.
Bistricer’s firm had purchased the building for $79 million in 2017 from Touro College. The deal included 53,000 square feet of air rights.
Since then, the property’s value has seen a sharp decline over the past decade.
In 2015, Touro was shopping the building for $115 million, or $850 per square foot. This $45 million sales price now values it at $547 per square foot.
The recent sales price is closer to the amount that Touro purchased the building for in 2008. The college bought the building from Extell for $44 million. Part of the building was used to house students.
The Upper West Side building’s drastic price decline is another casualty of changes in rent-stabilization. New York’s 2019 rent law aimed to strengthen protections for tenants. But it also limited the amount of money rent-stabilized landlords can make from improvements. Now, multifamily landlords claim the properties are unprofitable.
Buildings in New York City have been trading at staggering discounts. One East Harlem building sold earlier this year for about $285,000, a staggering 97 percent discount.
The purchaser may be making a bet that the laws will change in future generations. Some of the units are free-market, and the property is in a prime location: the Upper West Side and close to Central Park.
Meridian’s Lipa Lieberman and David Schechtman represented the seller in the deal.
Meridian’s Benjamin Nevid and Naphtali Marrus also brokered a $26 million loan for the buyer from JPMorgan Chase. The financing has a three-year term, full-term interest-only payments and a fixed rate in the mid-5s.
The six-story building was constructed in 1939 and has had recent upgrades.
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Clipper to buy Touro College building on UWS for $79M
Clipper Equity snags another refi for Crown Heights development
Rent-stabilized building sells for $285K — a 97% value cut
