Friday, February 1, 2013

[Updated] Report: Jared Kushner buys $130 million portfolio of East Village rental buildings

The Real Deal is reporting this afternoon that Jared Kushner and "an unnamed international investor" have closed on a portfolio of 17 walk-up apartment buildings in the East Village for $130 million.

This package features 271 apartments and 25 retail shops. And the seller — Westbrook Partners. We heard the rumor a few weeks back that Ben Shaoul was unloading part of his East Village portfolio.

Per The Real Deal:

The buildings included 201 East 2nd Street, 23 Avenue A, 129 First Avenue, 143 First Avenue, 338-340 East 11th Street, 165-167 Avenue A, 500 East 11th Street, 504 East 12th Street, 191-193 Avenue A, 435 East 12th Street, 516 East 13th Street, 211 Avenue A and 49 and 1/2 First Avenue.

The partnership will be making major capital improvements to all the buildings, a source close to the deal told TRD.

Our tipster told us a few weeks ago that the deal would not include Shaoul's current East Village projects, including the addition of the much-maligned 7-Eleven at 170 Avenue A as well as the residential conversion of the former Cabrini Center on East Fifth Street and the pool-topped A Building on East 13th Street.

Anyway, still sorting all this out... some (or all?) of these properties were part of the notorious East Village portfolio that first hit the market late in 2008 for $120. Curbed has those details here.

Occupy East 4th Street has a map showing the 38 East Village apartment buildings "identified as owned and managed by the many-headed hydra of Ben Shaoul." (Magnum Management, Westbrook Partners, Meadow Partners, PVE Associates and Fortune East LLC.)

Much more to come.

Updated 2-2

Here's more info on the deal via the Post today:

About 70 percent of the units are at market rents with a portfolio average of more than $2,300 in rent per month, said investment broker Aaron Jungreis, president of Rosewood Realty Group, which handled the transaction.

The institutional fund venture of Westbrook Partners, Normandy Partners and Ben Shaoul of Magnum Real Estate, which also managed the properties, did not have year-end tax issues like those of some private investors who fueled the fast and furious market in late 2012, said Jungreis.

36 comments:

xsie eden di bianco said...

Yet again--glad I moved to a boro. EV/LES is utterly unlivable these days. So gross/sad.

Anonymous said...

Ugh, can only mean more bad news. So glad I moved out to a boro...the EV/LES are just an unlivable mess these days. So sad/gross/predictable.

Anonymous said...

I am so glad people who hate living here have moved away.

Lorraine said...

Gak,
one of those is on my block, another is the block where I worked for 18 years. I'm afraid to read any more of the listings.

LvV said...

Buy me out, rich boy. I've wanted to move to the nameless slice between the UEV and Gramercy for YEARS now.

Gojira said...

It's all just a big shell game to these guys. Musical buildings - last tenant standing when the music stops gets their staircase removed while they are still living in the building.

But 500 East 11th Street and 170 Avenue A are the same building, just with different entryways, one on the block, the other on the avenue. So I have no idea what that might signify for the 7-11...

Anonymous said...

Does anyone know how this works if leases are up?

Jill said...

The list of addresses is missing 508 E 12th. The building database shows a company called Crexus Holdings somehow involved with the financing/mortgage. The documents won't open on my computer so I can't read what they say.

Jill said...

And he's married to Ivanka Trump!

Anonymous said...

Could they sell 504 and not sell 508? The buildings are connected after all.

blue glass said...

does anybody remember when mayor koch said "if you can't afford to live in the city move"?

if you are rent stabilized the landlord has to send you a lease renewal request form. if you are market-rate it's the same as if you lived in a building with under 6 units, at the end of the lease he does not have to.
there are now new laws about emptying entire buildings that are anti-tenant.

Anonymous said...

In the NY Post it said "504-508." I think the omission of 508 above is just a typo or shorthand. I'm celebrating the end of the Shaoul era, which in my case amounted to a 7-year siege. Though in the end, it must be said, all my requested necessary repairs were made. Kushner doesn't seem to have anywhere near the terrible rep Shaoul had online, or am I just not entering the right search terms?? What do we know about this guy, as it concerns rent-stabilized tenants?

Jill said...

Re 508 I was just trying to get the list to 17.

I was in the middle of an HP Action when the sale happened, but at least Shaoul had to pay the lawyer for showing up twice and sitting around for a couple hours. On the other hand 25% of my outlets are still broken.

I'm hopeful that these new Westminster people will make my repairs. They even have an "online portal" which sounds pretty fancy, and they look forward to earning my trust and developing a meaningful relationship (I kid you not, it's what their letter says.)

This is the 4th turnover since our building was in receivership and each time the new company made outstanding repairs pretty quickly, until the honeymoon is over and service abruptly stops.

Anonymous said...

"We look forward to addressing any questions you may have and are excited to be working for you" Just got my letter from Westminster tonight.

Anonymous said...

Well, the purchaser looked at a bunch of spreadsheets (maybe not even at the building themselves)calculated the magnitude that rents could be increased and determined that this was a wise investment. The purchaser just put $130 into our neighborhood so that A) he could increase the annual net income or B) he could hold onto it long enough for the real estate to appreciate it and sell it again or both A) and B). Yay, higher residential rents, and obscene commercial rents that only 7-11, Subway, Chipotle can afford!!!!!!!! How bad does that noisy little neighborhood bar on the corner sound now? Noisy bars or 7-11 and Subway. I'll choose the neighborhood bar...

Anonymous said...

Not rent stabilized but wondering what I should do. Start looking somewhere else?

Jill said...

It would be quite alarming if they didn't renew your lease. It seems an unlikely outcome but I think they may be able to raise your rent to anything they want, in which case you can decide to move if its not acceptable.

Anonymous said...

What do I do now? I am struggling to live here but I belong here. I walk the streets of people who lived and created here before me. Their spirits are still here. Andy Warhol Allen Ginsberg Ramones. Don't make me go on. I am young but chasing dreams of the greats. I am so inspired by east village I can't stand it. I hope when I walk the streets mAybe in the fall I will remember the words of a poet John Logan who said "he who is alone will be alone. He will wake up...read . and write long letters and walk by when the leaves blow "

Anonymous said...

I loved you east village. This is the end I'm afraid. The developers will win.

Anonymous said...

Hey east village people. Lets go to portlandia. Could be fun. Time foe the real artists and thinkers to get out. He who knows that enough is enough will always have enough

Anonymous said...

Why stay? Move on. There are other parts of the country that need our creativity. Lets get out. They are fucking up our creativity. Too expensive. East village is gone. Moving to Portland. Got a place. Alot cheaper.

Anonymous said...

Don't you have enough money, please don't take my life

Anonymous said...

OMG! I live in one of the buildings acquired by Jared Kushner in September...all I can say is God help the rent stabilized tenants. Response to needed repairs - zero, completely ignored. They do spend money on the property, though. Gut renovations begin immediately. Get some hip boots for walking in concrete for months and months.
They can't refuse to renew a legal stabilized lease but they did not mail mine and we had to dance around. So keep up with your dates on the lease, cuz they are hot to evict. Do NOT let it expire as you wait for them to act.

dwg said...

Forewarned is forearmed. Call GOLES or Tenants and Neighbors and know your rights.

Anonymous said...

Ivanka Trump's heart belongs to Daddy, obviously. She married him.

Jill said...

I'd love to hear more about your experience with kushner. Is your management co Westminster? Do they answer the phone? What's the response when you ask for repairs?

Re lease it's odd for them not to send it. I've found when that happens its about being disorganized. Shaoul wouldn't accept signed legal leases for bullshit reasons hoping people wouldnt argue and would just leave. It is the landlord responsibility to send the lease not for you to chase it. If you pay the rent it is very hard to be evicted if you are rent regulated.

Anonymous said...

This place has lost it's culture. RIP.

Ken from Ken's Kitchen said...

With the comment by Anonomous (February 2, 2013 at 6:12 AM) in mind:

Tenants & Neighbors are a good resource. So is the Urban Justice Center for legal advice -- they specialize in helping tenants with landlords like these, and can help you organize your building/form a tenants association and clue you in on working with NY state's Department of Housing and Community Renewal (DHCR) which is charged with regulatory enforcement of rent laws. Also, contact City Councilwoman Rosie Mendez for help with landlord issues, she's a pretty strong advocate for tenants.

Anonymous said...

Rosie Mendez is NOT an advocate. Please!! She like Quinn are useless.

Anonymous said...

Rosie Mendez was informed many moons ago. She was begged to help residents, and you know what?
Nothing, not a thing. not even one rally or any help at all. When she was informed she made it seem like she was going to help but ultimately did nothing.

Anonymous said...

There are many of us who are staying, some because we still find things that we love about the community, some who have kids in schools or elderly parents and can't pack-up and leave, some who can't risk giving up a job in this economy in the hopes of getting one somewhere else. So your comments are an insult to all of us who to choose to stay or due to life circumstances can't leave. For those of you saying the EV is over and we should all pack up and leave, don't let the door hit you in the ass on the way out. If more of us in the Sahoul buildings had stayed and fought, instead of taking buy-outs perhaps things would be a little different around here. So I applaud those folks still here who survived the forced migration Shaoul inflicted on us and hope something good will come out of this for us all. Perhaps we should all begin organizing now, just in case.

LvV said...

Anon 3:41, I didn't take a buyout the last three times. I support the Cooper Square Committee. I'm sick of living in a dorm. So I want to throw in the towel now, like so many before me -- I am fucking tired of people judging those who take buyouts. It's not exactly abnormal for someone to want to change neighborhoods after 15 years. And I want to move like four blocks north. I'll still support all the same business I do now. I'll probably still even go to the terrible Stuyvesant Post Office, that is how dedicated I am.

I don't have kids and I don't go to church here, and I'll be the exact same person if I move me and my cat to 17th Street. So maybe lay off the self-righteousness.

Anonymous said...

All things considered I've heard of very few people who took buyouts during the Shaoul regime. At least where I Iive most people got intimidated out because it was easier to move than to fight. But those were rent regulated people who moved here within the last 10 years so their rents weren't that low. I know of two buyouts, and one of the did it because she had cancer. A couple people tried subletting and got caught, one had pretty much moved to Brooklyn anyways and got caught (legitimately), one old lady died, one other old lady moved to a nursing home. One young woman got sick of the rats and moved a few blocks away saying it was worth the higher rent to her, the rest of us are still here, some hanging on by a thread.

Anonymous said...

@LuV

i wasn't being self rightous or judgemental. My neighbor downstairs took a buyout because he couldn't deal with the non stop construction and was worried about his little boy. I was just stating the fact that if more people had remained and stuck it out perhaps things would be different. This isn't about you personally. If you took the time to read it carefully, I was responding to the various posts saying that the East Village was dead. An opinion is just that, an opinion.

Anonymous said...

Of the seven tenants who left our building, within 2 years, 6 of the seven people took buyouts between 25 and 35 k. That won't get you very far.

LvV said...

OK then, and I admit I'm defensive, but every one of us could be your neighbor with the young son. We don't need kids or parents or anyone to justify leaving, and believe me, a buyout is sorrowful. So peace to you but I just ask that no one harshly judge your buyout neighbors. I haven't.