RCP Tribeca invested in the recapitalization of an 8-story, 13-unit apartment building in the highly desirable Tribeca neighborhood of Manhattan in Ney York City. The building underwent extensive renovations in 2004-2005 and was100% leased. The business plan was to convert the for-rent building to for-sale condominium units which is a process regulated by the New York State Attorney’s General office. Of the 13 units in the building, 11 units were residential and two units were commercial. Two of the residential units were subject to rent stabilization protection, which is a relatively low number for a building of this type.
The Partnership’s all-in cost in the building was $448 per square foot, compared to average sales comparables at the time of $958 per square foot. Once the condominium plan was approved, the units were marketed for sale. The building offered prospective buyers a diverse mix of inventory from turn-key renovated penthouse units with high-end finish-outs and terraces, to open-plan loft units ideal for owners who wanted to complete their own renovations.