This story has been updated with corrected appraisal figures.
STAMFORD – K5 Equities of White Plains, New York, purchased two city apartment complexes for a total of $57.2 million on July 14.
The private equity real estate firm that focuses on adding value and repositioning various classes of commercial real estate assets in the New York metro area added Daycroft Apartments (44-150 Blachley Road) and Hamilton Gardens (333 Hamilton Ave.) to its portfolio. It purchased both apartment complexes from Hamilton Daycroft LLC of Brooklyn, New York – Daycroft Apartments for $33.2 million and Hamilton Gardens for $24 million.
“We financed this deal with Fannie Mae debt,” said Adam Kessner, one of the principals of K5 Equities. “Our lender obtained an appraisal from Newmark as part of their approval process and the appraisal came in at $33.8 million for the Blachley Road property and $24.8 million for the Hamilton Avenue property. So, it was a total of $58.6 million appraised value when we paid $57.2 million.”
Daycroft Apartments includes 8 buildings, 108 apartment units and 104,000 square feet.Hamilton Gardens includes 4 buildings, 80 apartment units, and 77,000 square feet.
K5 Equities is a father-and-son operation that started in New York City. Steve Kessner, is a self-made entrepreneur who came from the Bronx, bought his first building in 1980 in the East Village. He has since bought more than 100 buildings over the span of his career.
He sold his 48-building portfolio for $225 million in March 2007 at the peak of that market cycle. Upon Steve Kessner selling the vast majority of his holdings in 2007, the purchaser (from the UK) hired his son Michael to head up their New York office to oversee all aspects of management, leasing and operations of their New York portfolio of properties.
Steve Kessner then partnered with his son in 2011 and together founded K5 Equities.
They have since acquired properties valued at nearly $400 million combined.
