Alvista at the Bridge - Hayward, CA
March 21, 2011
Phoenix Realty Group Acquires Ownership Interest in 13 Manhattan Apartment Buildings through Partnership with the Orbach Group
NEW YORK, March 21, 2011 – Phoenix Realty Group (PRG) has entered into a partnership with The Orbach Group to acquire an interest in a 13-building residential portfolio located on West 49th Street in Manhattan, just blocks from Rockefeller Center and Times Square and across the street from World Wide Plaza. Owned and operated by Orbach since 2008, the 13 five-story walkups with 253 apartments are located on a single block between 8th and 9th Avenues in the Midtown West section of New York City and offer a mix of market-rate and rent stabilized units.
The investment was made on behalf of a PRG institutional real estate fund focused on residential assets in and around New York City. The pre-war apartments are close to major subway lines, bus routes, cultural amenities and nightlife and were 99% occupied as of the closing of the investment.
“This is a very attractive portfolio that is perfectly suited for our investment focus,” said Udi Kore, PRG vice president. “And the Orbach Group is a high-quality owner/operator who has clearly demonstrated that they can execute the value-add business plan utilizing our institutional-level equity to realize the potential of this asset.”
“An increasing number of successful private owner/operators are attracting institutional partners. PRG knows their business and has the ability to recapitalize the built-up equity for these operators so they can continue to grow during this opportune time in the real estate cycle,” explained Steve Scioscia, PRG senior vice president.
The Orbach Group has holdings in several New York commercial and residential buildings in Midtown and the Upper West Side, as well as properties throughout New Jersey and the Philadelphia metropolitan area. With the current real estate market poised for continued recovery, the firm has plans to reinvest its savings and expand in New York and other markets, according to owner and president, Meyer Orbach.
“This partnership puts The Orbach Group in an ideal position – the capital gives us more flexibility to take advantage of the many investment opportunities the market presents” said Orbach. “It also allowed us to refinance the property, which will save us $6 million over the life of the loan. Much of this savings is being put back into the property for upgrades and improvements.”
PRG continues to actively invest in value-added multifamily properties and to pursue joint-venture development of new multifamily properties across Southern California and in the tri-state region of New York, New Jersey and Connecticut, tapping $400 million in discretionary institutional fund capital targeted for those areas. In the second half of 2010 alone, the firm acquired more than 2,100 apartment units nationally, valued at $250 million. The firm currently owns and manages market-rate apartment properties and affordable housing in major markets across the U.S.
Phoenix Realty Group is a national real estate investment manager and direct owner providing capital and expertise for the development and operation of rental and for-sale residential properties, low-income tax-credit housing, and mixed-use and commercial projects in urban areas across the United States. The vertically integrated firm maintains extensive fund management, underwriting, development, construction management and asset management capabilities. PRG has attracted investments from America’s leading public pension funds, banks and insurance companies, with discretionary funds that invest in opportunistic and value-added real estate ventures. The firm currently manages investments representing $2 billion in real estate development and acquisitions.
The Orbach Group is a privately held real estate investment, management and development company. As one of the Northeast’s leading apartment owners and managers, The Orbach Group prides itself on offering quality living for their residents provided by a professional staff of over 90 employees committed to excellence. The Orbach Group owns over 3,500 apartment units in NY, NJ & PA. The Orbach Group has a proven track record of acquiring and repositioning properties in high barrier, high growth markets.