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Successful Sale of 225-251 West 109th Street in Manhattan Valley, Manhattan
Bob Knakal successfully closed the first-time sale of the 109th Street Portfolio, a rare walk-up multifamily note sale totaling eight buildings located at 225, 235, and 241-251 West 109th Street in the heart of Manhattan Valley. Representing the sellers—Tom, Brody, and Harvey Schulwess, along with Five Spruce LLC—Bob and his team navigated this complex transaction, bringing in experienced investor Baruch Singer as the buyer. This sale marked a major portfolio transaction on the Upper West Side, reflecting continued demand for scale in core Manhattan locations.
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Sale Details
The portfolio sold for $15,350,000 on August 27, 2002, equating to approximately $157.85 per square foot across 97,243 buildable square feet.
- Sale Price: $15,350,000
- Price per SF/BSF: $157.85
- Sale Date: August 27, 2002
- Buyer: Baruch Singer
- Sellers: Tom, Brody, Harvey Schulwess, Five Spruce LLC
- Asset Class: Multifamily – Walk-Up, Portfolio, Note Sale
- Total Units: 140
- Buildings in Portfolio: 8
- Transaction Type: First-Time Sale
Property Details
The portfolio is located along West 109th Street between Amsterdam Avenue and Broadway, an area within the Manhattan Valley submarket of the Upper West Side known for its steady residential demand and institutional investment interest.
- Full Address: 225-251 West 109th Street, New York, NY
- Submarket: Manhattan Valley, Upper West Side
- Zoning: Primarily R8B/R9A, contextual residential zoning (subject to confirmation)
- Total Buildings: 8 walk-up buildings
- Total Units: 140 rent-stabilized apartments
- Total BSF: 97,243
- Notable Characteristic: All properties were sold as a note sale, creating an attractive opportunity for repositioning or recapitalization
Market Strategy and Positioning
At the time of sale, the early 2000s market for Manhattan multifamily properties was beginning to show the early signs of aggressive investor demand for scale and rent-regulated housing. This portfolio stood out due to its location, size, and potential upside through capital improvements and long-term repositioning. Bob Knakal’s ability to structure the transaction as a note sale attracted a buyer with a track record of acquiring and managing complex multifamily assets, ensuring the best possible outcome for the sellers.
Neighborhood Overview
Manhattan Valley is a submarket within the Upper West Side, bordered by Central Park to the east and Columbia University to the north. It has emerged as a vibrant, diverse neighborhood offering strong long-term fundamentals.
- Close proximity to Columbia University and St. John the Divine
- Near multiple subway lines including the 1, B, and C trains
- Surrounded by major institutions like Mount Sinai Morningside
- Minutes from both Riverside Park and Central Park West
Manhattan Valley has seen sustained interest from both institutional and private investors due to its strategic location and historically high occupancy rates.
Conclusion
The sale of the 109th Street Portfolio is a landmark multifamily transaction for Manhattan Valley, highlighting the value of scale, long-term cash flow, and location in core Manhattan. Bob Knakal’s in-depth market expertise and proven ability to structure complex portfolio deals were key in executing this first-time note sale successfully.
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Frequently Asked Questions
Q1: What types of buildings are included in the 109th Street Portfolio?
The portfolio consists of eight multifamily walk-up buildings located on West 109th Street. These are pre-war structures offering rent-stabilized apartments, sold as part of a note sale.
Q2: How many total units were in the sale?
There were 140 total residential units across the eight buildings in the portfolio.
Q3: What makes the Manhattan Valley location desirable to investors?
Manhattan Valley offers proximity to Columbia University, multiple transportation options, and historic parks. The neighborhood is known for stable rental demand and value-add potential, making it attractive to multifamily investors.
Q4: What is a note sale, and why is it significant here?
A note sale involves selling the debt associated with a property rather than the property directly. In this case, the buyer acquired control of the portfolio via its underlying notes, allowing for potential strategic repositioning.
Q5: Was this sale part of a larger investment strategy?
Yes, the buyer, Baruch Singer, is known for acquiring rent-stabilized buildings with long-term value. This portfolio fits into a broader strategy of acquiring distressed or underperforming assets in high-demand neighborhoods.
Q6: Were there any redevelopment or repositioning opportunities?
While the buildings were all rent-stabilized at the time of sale, the buyer had the opportunity to make capital improvements, increase operational efficiency, and potentially unlock long-term value through tenant turnover and regulatory navigation.
