New York-listed Equity Residential seeks buyer for two Manhattan buildings amid softening rental market
Equity Residential, founded by billionaire Sam Zell, is trying to curb its exposure to Manhattan’s West Side, where rents have been subdued in recent years because of new flat supply
Publicly traded landlord Equity Residential is marketing two Manhattan apartment buildings, and just completed the sale of a third, as it seeks to reduce its holdings in a rental market that is softening.
The Chicago-based real estate investment trust is looking to sell 800 Sixth Ave, a high-rise tower in Chelsea, and 505 W 54th St in Hell’s Kitchen, according to a source, who asked not to be identified because the matter is private.
New York-listed Equity Residential recently completed the sale of 101 West End Ave, a 506-unit building between 64th and 65th streets, for US$416 million to a consortium including Dermot, Dutch pension fund PGGM and USAA, according to Steve Benjamin, Dermot’s chief executive officer. Over the next several years, the buyers plan to upgrade the property, the second rental the group has bought in Manhattan this year.
Marty McKenna, Equity Residential’s head of investor relations, did not have a comment. PGGM and USAA did not immediately respond to requests for comment late on Friday.
Equity Residential, founded by billionaire Sam Zell, is trying to curb its exposure to Manhattan’s West Side, a wide swathe of the borough where rents have been weighed down in recent years by a glut of new flat supply, David Neithercut, the Reit’s outgoing chief executive officer, said on a July conference call with analysts.