Black Spruce Sells Chelsea Residential Portfolio for $95M – Commercial Observer

The Westover Companies, a Pennsylvania-based property management company, has acquired a 13-property multifamily portfolio of 147 units around Chelsea from seller Black Spruce Management for $94.5 million, Commercial Observer has learned. 

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The multi-building, 98,000-square-foot portfolio, dubbed The Chelsea Collection, is on the west side of Chelsea between West 19th Street and West 29th Street, according to broker Marcus & Millichap (MMI). Some of the properties include 339 West 19th Street, 431 West 22nd Street, 466 West 23rd Street and 313 West 29th Street. 

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The sale, which was handled by Marcus & Millichap brokers Joe Koicim, Logan Markley, Chris Dintrone and Kory Barbanel, highlights the ongoing demand for multifamily properties in New York City, the firm noted. Indeed, multifamily sales totaled $2.3 billion in the third quarter of 2024, compared to $1.4 billion in the first quarter of the year, according to data from Ariel Property Advisors. 

Black Spruce, which was founded in June 2009 by Joshua Gotlib, has owned the Chelsea portfolio for about 10 years, and was looking to sell as it shifts its eyes toward larger assets. Black Spruce did not immediately respond to a request for comment. 

“The Chelsea Collection is comprised of quality multifamily assets located in one of the top residential submarkets in the city that traded for just under $1,000 per square foot,” Koicim said in a statement. “The portfolio’s unique combination of location, quality and future upside made it an attractive asset for investors looking to capitalize on New York’s market rebound.”

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There haven’t been many portfolio trades this year, as such deals are rare in the NYC market, Koicim said, noting this was only the fourth such transaction he closed in the last 12 months. 

But the buyer — who did not respond to a request for comment — was interested in the properties because of the assumable financing and the ability to close this year, resulting in some potential tax breaks.

This acquisition won’t be Westover’s first foray into the NYC residential market. The company also owns The Nathaniel, an 85-unit apartment building in the East Village. The Chelsea acquisition expands Westover’s NYC portfolio to 14 properties. 

Amanda Schiavo can be reached at [email protected].