JLL Capital Markets announced today that it has successfully arranged $44.5 million in financing for 194 East 2nd St., a prominent 61-unit luxury multi-housing property in Manhattan’s East Village. The loan, provided by Citi, follows a major repositioning and renovation program completed by the owner, Benchmark Real Estate Group.
A premier residential transformation
Located at the corner of East 2nd Street and Avenue B, the six-story building underwent an extensive renovation after being acquired by Benchmark in 2024. The project modernized the building’s residential units, common areas, lobby, and amenity spaces, elevating the property to institutional-quality standards.
The building now offers a boutique luxury experience rare for the East Village submarket, featuring both an elevator and a 24-hour attended lobby. Residents have access to a robust amenity package, including a fitness center, infrared sauna, yoga and Pilates room, resident lounge, and a landscaped courtyard. The property’s ground floor is anchored by a long-term lease with Duane Reade, which occupies 10,000 square feet of the building’s 15,450 square feet of retail space.
Strengthening market fundamentals
The JLL Debt Advisory team, led by Managing Director Michael Zaremski, Senior Director John Flynn, and Director Clayton Ross, facilitated the transaction.
“Demand for high-quality multifamily assets in Manhattan continues to be driven by exceptionally strong operating fundamentals, limited new supply and sustained renter demand,” said Zaremski. “194 East 2nd St. represents a rare combination of institutional-quality amenities, durable cash flow and meaningful long-term value creation opportunities.”
Clayton Ross added, “This transaction is a compelling example of how the debt capital markets are evolving to meet sponsor demand for well-leased, institutional-quality assets. Citi’s multifamily-only CMBS portfolio creates a more efficient execution path for sponsors like Benchmark who own high-quality, stabilized properties.”
Strategic location
Positioned at the nexus of the East Village and the Lower East Side, the property offers residents premium access to Manhattan’s top dining, retail, and entertainment corridors. The location also provides convenient connectivity to multiple subway lines and is in close proximity to New York University, further driving renter demand for the high-end residential units.
Benchmark Real Estate Group, led by Jordan Vogel and Aaron Feldman, continues to focus on value-add projects across the New York City market. This refinancing underscores the firm’s successful execution of its renovation strategy and the continued appetite from lenders for stabilized, high-performing multifamily assets in prime Manhattan locations.
