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Prana pays Related $36M in Bronx multifamily play

Related developed Concourse buildings in 1999 with LIHTC program

1065-1075 Gerard Avenue in the Bronx 
1065-1075 Gerard Avenue in the Bronx

Prana Investments bought a pair of multifamily buildings in the Bronx from the Related Companies’s asset management arm for nearly $40 million.

Prana, the multifamily investor headquartered in San Francisco, paid $36 million to pick up the 252-unit River Court and Gerard Court apartment complex in the Concourse section of the Bronx, sources told The Real Deal.

The pricing works out to about $142,000 per unit for the buildings at 1065-1075 Gerard Avenue. The seller was Related Asset Management

Representatives for Related and Prana could not be immediately reached for comment. A Hodges Ward Elliott team of Daniel Parker, Paul Gillen and Ariel Tambor marketed the properties for Related and negotiated the sale. The brokers declined to comment.

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Related developed the elevator building near Yankee Stadium in 1999 through the Low Income Housing Tax Credit program. The properties have a 25-year 421a tax exemption.

Prana Investments, headed by president and CEO Neil McKinnon, is an active investor in the Bronx and – to a lesser extent – northern Manhattan.

The company last year paid $65 million to buy a portfolio of eight Bronx multifamily buildings spanning 361 residential units from the Morgan Group.

The Hodges Ward Elliott brokers have sold a number of buildings for Related recently, including the $88 million sale of a pair of multifamily buildings in the Castle Hill section of the Bronx to Abraham Furchthandler earlier this year. The brokers also sold a piece of a large portfolio Related owned with the New York City pension funds last year to Taconic Investment Partners for roughly $70 million last year.

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