The Rockpoint Group is betting on condominium conversions in the heart of New York’s Financial District with a $430 million purchase of two neighboring buildings.
The Boston-based private equity real estate firm purchased 63 and 67 Wall Street, buildings originally constructed in the 1920s as offices and later converted to a total of 810 apartments. According to local media reports, the sellers are DTH Capital and Metro Loft Management, which converted the properties after the September 11, 2001 terrorist attacks.
About 10,000 square feet of amenity spaces connect the buildings, including a fitness center, sundeck and lounge. The properties also include 20,000 square feet of retail space.
PERE has learned that capital for the purchase came from Rockpoint’s fifth opportunistic fund. The firm closed Rockpoint Real Estate Fund V in March on $3.3 billion, exceeding both its $2.5 billion target and the $2.5 billion its predecessor vehicle brought in at its July 2007 close. The fund focuses on value creation opportunities and resolving complex situations through the acquisition of office, hotel and multifamily properties in the largest US coastal markets.
The purchases come as New York’s housing market shows signs of cooling after years of above-average growth following the global financial crisis. Last month, Manhattan apartment rents fell for the first time in two years. Median rents in March were down 2.8 percent, to $3,300, from March 2015, according to a report by appraiser Miller Samuel and brokerage Douglas Elliman Real Estate. Meanwhile, the vacancy rate rose to 2.42 percent in March from 1.99 percent a year ago.