Avalon Chrystie Place is Sold For $365 Million
Avalon Chrystie Place, the 361-unit residential tower at East Houston Street, has been sold for $365 million. The deal was announced today by AvalonBay Communities, which developed the building and three other properties in the former Cooper Square Urban Renewal Area in 2005.
The company will earn $108 million from the transaction. AvalonBay held a 20% interest in a joint venture with JP Morgan Asset Management.
The 14-story building includes 72,000 square feet of retail space, most of which is leased to a Whole Foods until 2028. At the time the property was listed, it was reported that 80% of the apartments were market rate and 20% affordable.
In 2004, Mayor Michael Bloomberg celebrated the “topping off” of the building. Here’s how a city press release back then described the financial particulars that made the project possible:
The funding sources include the New York State Common Retirement Fund, advised by JPMorgan Fleming, which is AvalonBay’s equity partner in Avalon Chrystie Place, providing $28 million of equity financing. The developer, AvalonBay Communities, is providing $7 million of equity. Construction and permanent financing comes from the sale of $117 million of tax-exempt bonds issued by the NY State Housing Finance Agency. Avalon Chrystie Place will also receive 421a property tax benefits and sales tax exemption for on-site construction materials through a unique arrangement with the Empire State Development Corporation. AvalonBay Communities Inc. paid the City $13.5 million for the land for the first phase and will pay the City $40.5 million total to purchase the land for all four phases of development.
The new owner at Avalon Chrystie Place has not yet been disclosed. There are 9 active listings on Streeteasy for apartments in the building, ranging from $3,000 for a studio to $8200 for a 2-bed/2-bath unit.