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Affordable housing developer Phipps Houses is putting its 894-unit Kips Bay Court complex on the block, with a hefty price tag.
The vast majority of the units in the eight-building complex, which lies between 26th and 29th streets east of Second Avenue, fetch market-rate rents, making Kips Bay a particularly attractive investment.
Industry insiders tell The Real Deal the complex could sell for $600M to $700M, although Phipps Houses and CBRE’s Darcy Stacom, who’s marketing the deal, declined to confirm those numbers.
Kips Bay was built in 1975 under the state’s Mitchell-Lama housing program, which caps rents but allows projects constructed under it to exit the program after 20 years. Following a lawsuit in 2002, Kips Bay did just that.
Today roughly 520 units, or 58%, are occupied by free-market renters, while the rest are occupied by Section 8 renters. However, because the government makes up most of the difference between the rent paid by Section 8 tenants and market rates, the project is for all intents and purposes almost entirely free market.
Studio apartments start at $2,711 a month and three-bedrooms start at $6,426 a month. [TRD]
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