JSB Capital Group, Holliswood Development and Edifice Partners have acquired a six-building portfolio in the East Village from Kushner Companies for $38 million.
Kushner has been unloading the neighborhood properties over the last few years as it moves to focus on New Jersey developments.
The walk-up portfolio includes four contiguous properties at 329, 331, 333, and 335 East Ninth Street, which sold for $26.9 million, as well as two additional buildings at 516 and 518 East 13th Street, which sold for $11 million. The combined properties offer 56 residential units and six retail spaces, spanning a total of 49,513 square feet.
“We find ourselves in an environment that has become inhospitable,” Kushner Companies’ chief executive Laurent Morali told Crain’s. “You can expect to see more sales in the future.”
Kushner Companies, with Nicole Kushner Meyer now at the helm, is turning to expand its portfolio in the Garden State. The company secured $ 1 billion in construction financing in the last year according to Commercial Observer, as well as a $295 million construction loan for its Jersey City project.
For Holliswood, the deal expands the young developer’s footprint to nine tax-class 2A/2B buildings in the neighborhood and 16 buildings overall. It is the developer’s largest deal to date.
Since buying nearby 337 East Ninth Street in 2022, Holliswood has been eyeing the Kushner portfolio.
Holliswood is zeroing in on tax-protected assets. “Tax class 2B buildings provide a hedge against the unpredictability of future NYC property taxation and rising operating costs,” a spokesperson for the company said.
“Our focus remains on acquiring vacant buildings or properties with at least 65 percent free-market units, particularly those classified as tax class 2A/2B,” Holliswood’s Solomon Berger told Commercial Observer.
On the East Ninth Street and East 13th Street deal, a Marcus & Millichap team led by Joe Koicim represented the seller and procured the buyer.
“This was a rare opportunity to acquire a large, 70 percent free-market portfolio with strong cash flow and nearly seven years remaining of attractive in-place assumable debt,” Koicim said in a statement.
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