NEW YORK CITY—RiverOak NYC’s latest acquisition in the Greenwood Heights section of Brooklyn closed out its RiverOak NYC Fund 1 with a total of $113.5 million in eight New York City-based multifamily and mixed-use property purchases.
In its latest deal Stamford, CT-based RiverOak NYC and joint venture partner The Mann Group of Brooklyn, closed on the acquisition of the four-story multifamily building at 215 33rd St. The 13,400 square-foot building was acquired in an off-market transaction for $5.8 million or $433 per square foot.
The Mann Group and RiverOak were attracted to the building located between 4th and 5th avenues near Industry City and the 36th Street Station express subway stop served by the D, N, R and W subway lines because of its “location in the path of growth,” says Derek Eakin, RiverOak’s chief investment officer.
“Our strategy is to renovate units and create building-wide amenities to appeal to the younger TAMI (technology, advertising, media and information) oriented tenancy that is transitioning into the neighborhood. The goal is to provide compelling product that satisfies the ‘live, work, play’ mentality that tenants demand today,” Eakin said.
The RiverOak NYC fund in about four years purchased multi-family and mixed-use properties in Brooklyn and Manhattan including a multi-family portfolio in Harlem, an office condominium at 77 Bowery and inclusionary housing projects at 321 East 60th St. and 316 East 91st St.
Stephen DeNardo, CEO of RiverOak Investment Corp., says of the fund’s closure, “Approximately 94% of investor’s commitments went into transactions. This compares favorably with other real estate investments, including non-traded REITs that typically only invest 85% of the committed capital.” Investors have received distributions of approximately $18 million or 63% of their committed capital while still owning six assets.”
RiverOak officials state the RiverOak NYC fund successfully brought together the expertise of RiverOak Investment Corp. executives DeNardo and Eakin with noted real estate investment sales professionals—Bob Knakal, Paul Massey and James Nelson.
DeNardo adds that RiverOak expects that there will be at least one more distribution to investors this year as air rights contracts in one of the transactions was expected to close at the end of October.