Client Access icon

CLIENT ACCESS

Case Studies

THE MORRISANIA MULTIFAMILY PORTFOLIO
BRONX, NY

676 Units, 17 Buildings & 1 Vacant Lot | Project Based Section-8 Portfolio | SOLD

$85,500,000

Sale Price

December 2014

Close Date

$127

$/SF

$123K

$/Unit

676

Units

17

Buildings

675K

SF

MORRISANIA

Neighborhood

“The interest this package generated illustrates the expanded buyer pool for this specific product type. The Morrisania Portfolio presented an ideal opportunity to preserve affordable housing, which is in line with the de Blasio administration’s 10-year housing plan.”

Michael A. Tortorici

Vice President of Ariel Property Advisors

THE ASSET

  • Consisting of 676 residential units across 17 buildings, this project based section 8 portfolio is separated into 4 sub-packages, known as Morrisania I, Morrisania II, Morrisania III and Morrisania IV, all of which are each encumbered by individual HAP Agreements.

CHALLENGE

  • Given the extensive regulatory obligations governing the property, the buyer pool was limited to active owners and operators familiar and capable of purchasing this specific product type.
  • With a pool of very established buyers aggressively pursuing this deal, the marketing process—from due diligence gathering through contract negotiations—needed to be executed flawlessly.

EXPERTISE / SOLUTIONS

  • Our experience selling similar HPD regulated multifamily assets made the process of understanding the value and accessing the buyer pool more efficient.
  • By creating a secure, password-protected data room we streamlined due diligence review and maintained appropriate document confidentiality.
  • With the permission of ownership, we created a bidding deadline to leverage the strong, focused investor interest, and maximized our negotiating leverage by implementing a competitive bidding process. This included sending multiple contracts to top bidders so ownership could negotiated the highest price and best possible terms.

CASE STUDIES ARCHIVE

The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee the accuracy of any information provided herein. As an example, all zoning information, buildable footage estimates and indicated uses must be independently verified. Vacancy factors used herein are an arbitrary percentage used only as an example, and does not necessarily relate to actual vacancy, if any. The value of this prospective investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor and/or legal counsel should evaluate. The prospective buyer should carefully verify each item of income, and all other information contained herein.