Originally Posted in The Real Deal
Written By Rich Bockmann
The Dermot Company and Rockwood Capital pulled off a $57.6 million acquisition loan from BBVA Compass to close on the $100 million purchase of a 130-unit rental building at 250 East Houston Street in the East Village, the firms announced Tuesday.
Dermot and Rockwood, both based in Midtown, purchased the 13-story property known as the Red Square between Avenues A and B from developer Michael Rosen. The deal went into contract in August.
The partners landed the acquisition loan from the Spanish bank Banco Bilbao Vizcaya Argentaria (BVVA) and plan to renovate the building’s mix of studio, one- and two-bedroom apartments.
Rockwood Capital director Richard Kramer said the property is an “appealing long-term investment” due to its location in an evolving, mixed-use neighborhood, proximity to transportation and improving retail.
A team at HFF of Andrew Scandalios, Jeff Julien and Rob Hinckley represented the seller in the building sale, and the brokerage’s Steven Klein and Geoff Goldstein handled the financing.
Earlier this year, Rockwood sold a hotel it owned at 312 West 37th Street in the Garment District with the Albanese Organization and the Delaware-based Buccini/Pollin Group to the hospitality arm of Qatar’s Alduwaliya Asset Management for $167 million.
Dermot, meanwhile, has been buying more multifamily properties like the $175 million building at 377 East 33rd Street in Kips Bay after CEO William Dickey stepped down last year.
Donovan LLP acted as legal counsel to Dermot in connection with this transaction.