Equity Residential Shopping 2 Manhattan Rental Buildings
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Amid a sliding rental market in the city, Sam Zell’s Equity Residential is looking to sell two of its Manhattan apartment buildings.
The REIT is preparing to sell a high-rise tower at 800 Sixth Ave. in Chelsea, as well as a 12-story building at 505 West 54th St. in Hell’s Kitchen, Bloomberg reports.
Together, the two buildings feature 488 rental units. Equity Residential just sold another Manhattan apartment building, at 101 West End Ave., to a group including Dermot, USAA and Dutch pension fund PGGM for $416M.
The planned sales are part of a plan to shed holdings on Manhattan’s west side, where a vast number of rental buildings are forcing rental prices down. Outgoing CEO David Neithercut said during an earnings call in July that selling one of the buildings is “an opportunity to address the negative impact in our New York City growth rates.”
Net effective rents in Manhattan, which takes concessions into account, declined for the eighth time in nine months to hit $3,310 in August, according to appraisal firm Miller Samuel.
Cushman & Wakefield’s Douglas Harmon and Adam Spies are representing Equity Residential. The asking prices for the buildings were not made public.