Westover Picks Up Chelsea Multifamily Portfolio For $95M

The Westover Companies snapped up a 13-property multifamily portfolio in Chelsea for $94.5 million.

The King of Prussia, Pennsylvania-based firm purchased the 147-unit, 98,000-square-foot portfolio on the west side of Chelsea between West 19th Street and West 29th Street, the Commercial Observer reported. The seller is Josh Gotlib’s Black Spruce Management.

A Marcus & Millichap team including Joe Koicim and Logan Markley represented both sides in the deal. John Wood and Rob Verrone of Iron Hound Management facilitated the assumption of the existing CMBS loan.

The NoMad-based Black Spruce purchased the portfolio for $80 million in 2016. It secured $75 million to refinance the properties a year later.

The firm was looking to sell as it turned its attention towards larger assets, according to the Observer. In the years following the pandemic, Black Spruce amassed a 4,000-unit portfolio, becoming one of the city’s largest rental landlords.

The company is also in contract to sell a 1,000-unit affordable housing portfolio of more than 60 buildings to retired boxer Floyd Mayweather Jr. for $402 million.

Koicim said Westover was attracted to the deal because of the assumable CMBS loan and tax breaks from closing this year, the Observer reported. The deal expands the firm’s New York City portfolio to 14 properties. The firm bought The Nathaniel, an 85-unit luxury apartment building in the East Village, for $56.8 million in 2022.

– Elizabeth Cryan