Schron Buys Monterey for $250M
The Related Companies, L.P., has sold the Monterey, a large luxury rental tower at 175 East 96th Street, to investor Rubin Schron. The 521-unit building was put on the market in January and received bids ranging between $250 million and $300 million, Bloomberg reports.
The Monterey is an 80/20 building, with 80 percent of its units rented at market rate and 20 percent reserved for lower-income tenants. Schron does have the prerogative, however, to convert the lower-income units into market-rate units but current tenants are protected until they move out. Currently, there are eight units actively being marketed. A studio lists for $2,795 million; the one bedrooms start at $2,895M, and there’s a two-bedroom apartment for $5,900M.
The deal is the year’s most expensive building transaction so far. Doug Harmon, the senior managing director at Eastdil Secured, LLC, who handled the deal, justified the price, saying: “Because of Monterey’s size, spacious apartments, spectacular views, and full amenity package, it priced equally well to converters as it did to the rental-building buyers.”
Related was the developer who built the building in 1993. It has 29 floors and enjoys a wide range of amenities, including a large fitness center, a four-lap pool, a children’s playroom, and concierge service. Related currently owns 19 other luxury rental buildings in the city including the MIMA, Tribeca Green, and The Strathmore. It’s also the developer of New York’s mega project, Hudson Yards. Rubin Schron is an investor and partial owner of the Woolworth Building.