News
STONEHENGE'S TWO TEMPTATIONS
February 15, 2012
| Stonehenge Partners has made two big-deal departures from its standard acquisition platform, and so far, they seem to be working out: a major redevelopment play of part of St. Vincent's Medical Center (at Sixth and 15th) and its first JV (with SL Green). |
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| After we spoke, Stonehenge managing director Richard Dansereau and acquisitions director Alan Klein (at their moonswept 888 Seventh Ave office) and managing partner Ofer Yardeni checked out a nearby apartment building for sale. What they're looking for in potential buys: what's motivating the seller, what work is needed, and what's the marketability? The point is to buy core or core-plus or transform acquisitions into that class and then sell. Stonehenge is in a property-value, not cash-flow, business. And yet, it's sold only 13 of the 40 buildings it has bought over 17 years. Another sale, though, is coming up within 60 days, says Richard, who's speaking at our New York Multifamily Summit on Friday morning. (Remember to register.) |
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| Stonehenge invested $500M in 2011, and Richard tells us that number could double this year. The JV with SL Green (that firm's entry into multifamily) was Stonehenge's largest deal ever and thus holds the promise of big returns. The July 2010 acquisition of housing associated with St. Vincent's Hospital, a gut renovation, was also outside Stonehenge's norm. But it was an opportunity to buy a completely vacant property and add by-right density (a two-story penthouse unit and ground-floor retail in front). Interior demolition on the 174-unit 555 Sixth Ave (rendered above) is done, and construction began last month. Richard says the first units will deliver by the end of the year. |
