Orbach launches Manhattan invasion with $70m buy.
The Orbach Group, a New Jersey-based owner, developer and manager of approximately 3,000 luxury rental units in the Garden State and Pennsylvania, has made the move into Manhattan with the purchase of 13 rental apartment buildings containing 254 units.
The five-story walk-ups are located on the south side of West 49th Street between Eighth and Ninth Avenues, directly across the street from World Wide Plaza.
The Orbach Group acquired the Clinton neighborhood buildings for $70 million. Meridian Capital Group financed the purchase.
According to chief executive officer Meyer Orbach, the firm intends to become a much larger player in the Manhattan rental market.
"This is just the first of what we anticipate will be a number of strategic acquisitions for The Orbach Group," said Orbach.
"Contrary to popular belief, there is financing available for companies with solid financial credentials, a track record of success and smart, achievable business goals. For companies like ours that possess these attributes, now is a great time to buy in the City. We intend to bring our superior record of rapid growth to Manhattan in a big way."
Orbach added that his firm is currently in the market for quality Manhattan rental properties, looking to make several purchases in the near future.
"Market turbulence hasn't made it any easier to secure acquisition financing," says Ralph Herzka, president and CEO of Meridian Capital Group. "Given the challenges that exist in today's market, we are proud to have arranged this complex deal for the Orbach Group."
The Orbach Group owns a portfolio of high-end residential properties throughout New Jersey and Pennsylvania. Its properties in New Jersey are located throughout the state--from Cherry Hill in the south to Palisades Park in the north. Its Pennsylvania properties are in Center City Philadelphia and Bucks and Lehigh counties. Although The Orbach Group has holdings in several commercial buildings in Midtown, this is their first acquisition of multi-family buildings in Manhattan.
The 254 rental units in the Clinton buildings consist of one and two-bedroom apartments and two-bedroom duplexes, boasting 98% occupancy. In addition to the residential units, there are six fully occupied retail spaces. Together, the buildings have 325 feet of frontage on West 49th Street, comprising of 40% of the land mass of the entire block. The Orbach Group will gut renovate apartments as they turn over. New stainless steel appliances, marble countertops and oak cabinets will be added in the kitchens.
Aaron Jungreis of the Rosewood Realty Group represented The Orbach Group in the transaction.