MKF Realty LLC (MKF), a developer, owner and manager of residential and commercial properties, today announced that it has closed on the purchase of One Union Square South from Related Companies, a New York City-based fully integrated real estate development company, for approximately $211 million. The 239-unit luxury rental apartment building is known for its premier location adjacent to Union Square, expansive outdoor rooftop lawn and state-of-the-art fitness center. MKF is retaining Related Management Company to manage the asset.
The deal went into contract in May. Doug Harmon of Cushman & Wakefield advised Related on the sale with Helen Hwang and Rael Gervis from Meridian Capital Group representing MKF. Wells Fargo, on behalf of Fannie Mae, provided financing for the acquisition of the property.
“MKF’s optimism about the future of New York City and New York Real Estate is unwavering. This acquisition demonstrates MKF’s ability to identify and acquire high-quality, multi-family properties in prime Manhattan locations that are well-positioned for long-term capital appreciation,” said MKF Director of Real Estate Adam Smith. “We firmly believe in the growth and vitality of the Union Square district and we are extremely excited to be a part of this community and neighborhood. We are confident that One Union Square South’s quality construction, along with our planned upgrades and enhancements to the units, common areas and amenities, will make this asset a significant addition to our portfolio.”
“This deal underscores the continued strength of the Manhattan real estate market where, even at the height of a global pandemic this spring, forward-looking investors like MKF recognized the long-term value of marquee buildings in our city’s most dynamic neighborhoods,” said Jeff T. Blau, CEO, Related Companies. “Related has long been committed to the Union Square area and we look forward to partnering with MKF on the management of One Union Square South. This building was crucial to the revitalization of the district more than 20 years ago and will continue to be an exceptional residence for decades to come.”
Built in 1998 by Related, One Union Square South is a luxury residential rental tower designed by architect Davis Brody Bond with interiors by Rockwell Group. The residence offers spacious apartments with premier amenities and work-from-home conveniences, such as a quarter-acre outdoor rooftop lawn, an outdoor dining area with BBQs and a state-of-the-art fitness center. The building’s façade features a public art wall containing the mixed-media Metronome by Andrew Ginzel and Kristin Jones that was, at the time, the largest private commission of public art in New York City’s history.
The luxury residences are located above a five-story retail block that includes Regal Cinemas and several other prime retail spaces including Nordstrom Rack, Best Buy and more. The neighborhood is a dynamic center of retail, culture and cuisine and is home to the city's oldest Greenmarket and historic Union Square Park. The building is easily accessible by public transportation including the N, Q, R, W, L, 4, 5 and 6 subway lines at The Union Square/14th Street subway station—New York City’s third largest transportation hub—or a short walk to the PATH train at 6th Avenue. Seven bus lines serve the neighborhood, including the M1, M2, M3, M7, M9 and M14 busway.
Adam Smith[email protected]