TF Cornerstone acquires multi-housing property for $71 million and secures $35.5M financing from JLL

New York, NY JLL Capital Markets has arranged the $70.77 million sale and $35.50 million acquisition financing for The Berkley, a 95-unit residential rental property at 223 North 8th St. to NYC-based real estate developer TF Cornerstone.

JLL marketed the property on behalf of the seller, a partnership between Trinity Place Holdings Inc. (NYSE: TPHS) and Pacolet Milliken. JLL also worked on behalf of the buyer, TF Cornerstone, to secure $35.50 million in acquisition financing from Nationwide, a global insurance and financial services company.

Built in 2016, The Berkley consists of two, seven-story buildings connected by a courtyard. The apartments range from studio to three-bedroom units, 76 of which are market rate and 19 of which are affordable under a 25-year 421a tax abatement that expires in 2042. 

Outfitted with condo-quality finishes, the property boasts a full amenity package that includes a rooftop sundeck lounge, two-story fitness center and yoga lawn, 3,600 square foot central landscaped courtyard, tenant storage, bike storage, parking garage, and unobstructed views of the Manhattan skyline.

Located at the epicenter of Williamsburg, one of NYC’s most resilient submarkets, The Berkley offers convenient access to public transit and a lively neighborhood of greenspace and waterfront esplanades alongside popular and cutting-edge dining, centralized shopping along the Bedford Avenue Retail Corridor, and world-class nightlife. 

The JLL Capital Markets Investment Sales team representing the seller was led by senior managing directors Jeffrey Julien and Rob Hinckley, senior director Steven Rutman, vice president John Taylor and analyst Joy Ryoo. Working on behalf of the borrower, senior managing director Steven Klein, managing director Geoff Goldstein, associate Ricky Song and analyst Joy Ryoo led the JLL Capital Markets Debt Advisory team.

“The Berkley presented a rare opportunity to acquire an institutional, boutique residential property with rent upside potential in a highly desirable and proven submarket,” said Julien.

“The property has shown resilient performance maintaining over 95 percent occupancy throughout the pandemic, and the deal received a tremendous amount of interest from the lending community given the institutional quality sponsorship,” said Klein. 

“We are pleased to have completed this opportunistic sale of the Berkley, which reflects the extraordinary demand by institutional investors to own high-quality multifamily assets in prime New York City neighborhoods,” said Jeffrey Travia, vice president at Trinity Place Holdings.

“Our company is proud to have partnered with Trinity Place Holdings on this trophy quality asset in one of New York’s most desirable neighborhoods,” Clay Adams, Pacolet Milliken Real Estate president said. “Pacolet Milliken will continue to build its property portfolio, one that is significant in scale and one that positions us for compelling investment opportunities in our future.”

“TF Cornerstone is delighted to add 223 North 8th St. to our portfolio of well-located housing in highly desirable neighborhoods of New York City,” stated Laura Murphy, director of finance with TF Cornerstone. “Williamsburg continues to shine as a thriving community that is sought after for its high quality of life and myriad amenities, and we look forward to bringing our five decades of experience in the housing market to The Berkley.”