Slate Property Group and Avenue Realty Capital team up to close on $120 million multifamily acquisition

Manhattan, NY Slate Property Group (Slate), an owner, operator and developer of multifamily and commercial real estate in the New York metropolitan area, and KABR Group (KABR), in partnership with Avenue Realty Capital’s (ARC) equity platform, have acquired 600 Columbus Ave., a 14-story multifamily building in the Upper West Side neighborhood.

Located one block from Central Park, the 175,500 s/f, full-service elevator building, which spans the entire block between 89^th and 90^th Sts., comprises 166 apartments, 27,500 s/f of retail and 100 parking spots. The partnership purchased the property from its original developer and owner for $120 million, making it the largest single multi- family acquisition in New York City in 2023. The acquisition was financed in part by a $68 million loan from an affiliate of Apollo Global Management.

The partnership is planning a capital improvements program that will significantly upgrade 600 Columbus’ apartment interiors, lobby, hallways, and other common areas. Residents will also have access to a new luxury amenity package, consisting of a refreshed roof deck, fitness center and resident lounge.

“Manhattan has exhibited strong multifamily dynamics over the past 24 months while also remaining one of the most undersupplied housing markets in the nation,” said Martin Nussbaum, principal at Slate Property Group.“This combination of factors gives us the confidence to expand our portfolio of long-term, institutional quality assets in core New York City locations. In 2022 alone, we acquired more than $300 million in market-rate value-add acquisitions, totaling more than 650 residential units and now have 350 apartments in active development throughout Manhattan, Queens and Brooklyn. Our acquisition of 600 Columbus builds upon this momentum.”

“We are pleased to partner with Slate Property Group and KABR on the acquisition of this unique and well-located asset on a discounted basis that fits perfectly in our value-add multifamily investment strategy in the New York metropolitan area,” said Udi Kore, managing principal and co-founder of Avenue Realty Capital.

“It is difficult to replicate a building like this from the ground up, and with a very limited supply of rental housing available in the foreseeable future, its refurbishment will serve the neighborhood well.”

The building features six commercial spaces situated on the ground and second floors. Current retail tenants include ACE Hardware, Atmosphere Kitchen & Bath, Round Star Soccer and Columbus Pre-School.

In addition to its proximity to Central Park, 600 Columbus Ave. residents have access to restaurants, shops and grocers including Whole Foods, Trader Joe’s, Zabar’s and Westside Market. The neighborhood has cultural institutions, such as the American Museum of Natural History, Lincoln Center and the Metropolitan Opera House, as well as close proximity to Columbia University and Fordham’s Lincoln Center campus. The building is near the 1, 2, 3, B, and C trains, providing connectivity to Midtown.

ARC has been an active equity investor in the multifamily and mixed-use segment of the market in New York City and the surrounding areas over the last 12 months. 600 Columbus marks the eighth investment funded by ARC during that period.

Slate and ARC have now partnered on nine residential transactions with a combined value of approximately $450 million. In 2022, the firms jointly purchased a development site at 159 Boerum Street in Brooklyn with plans to construct 161 residential units of which 30% will be affordable. In addition, the partnership recently completed and leased up Dutch House, a 186 residential unit luxury apartment building in Long Island City, Queens of which 30% of the units are affordable.

Bob Knakal’s team at JLL represented both sides of the transaction.