Precise Capital Management to Buy Scarborough Apartments
Precise Capital Management has reached a deal to acquire 205-207 Morningside Ave, a 214-unit apartment complex that chief executive Daniel Gryfe tells us comes with a “major value-add play,” with seven acres of land available for future development. (This is the real estate equivalent of foreshadowing.) “There’s the possibility of building another tower," while creating energy efficiencies on the existing "1960s-vintage" property. Precise Capital, which is primarily focused on multifamily, is buying the Morningside complex from a private holding company via a bid process for $29M. The deal closes in September.
While 205-207 Morningside has a few years on it, its roof, windows and elevators all have been replaced. “The heavy lifting's been done,” Daniel says, noting the plan is to upgrade and overhaul all of the residential units. “There’s a tremendous amount of upside.” It’s the first buy this year for Precise Capital, which has been “heavy on selling over buying” and is in the midst of clearing out a substantial portion of its portfolio, he notes. This includes apartment properties 2323 Eglinton Ave E and 646 Oakwood Ave. “It’s a good seller’s market,” says Daniel, “so we’re realizing the value of assets we’ve bought the last couple of years.”
