UDR Takes First Big Step Into Manhattan Market 

UDR’s planned $261 million acquisition of 10 Hanover Square in New York City represents the Denver-based apartment REIT’s first foray into the Manhattan market. But it probably won’t be its last.

UDR has entered into a definitive pact with the Witkoff Group to buy the 493-unit residential property, with plans to take over the existing $192 million fixed-rate mortgage on  the property. The deal is on track to close following the assumption of the mortgage, which has a 5.93 percent rate.  It requires interest-only payments through the end of next  year and matures in December 2015.

UDR Chief Financial Officer David Messenger remarks,  “This acquisition is consistent with our strategy of owning apartment homes in high-barrier-to-entry markets that have low home-affordability, great job bases and a high propensity to rent.” UDR has been scouting the Manhattan market for  the past 18 to 24 months and still has its antennae up. Messenger adds, “We have said for two years that we want New York to be a core market for UDR.” 

Source: Crain’s New York Business and NAA’s Industry Insider

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