Hawkins Way Capital just wrote a $28 million check for 81 East Third Street, a 13-story East Village building that blends student housing with market-rate rentals. The property doubles as a dorm for the New York Conservatory for Dramatic Arts and includes street-level apartments occupied by neighborhood residents. The sale closed this week, adding fresh fuel to a growing wave of investor buys in Manhattan’s student-housing scene.
The deal
The $28 million acquisition closed Wednesday, according to Commercial Observer, which identifies Beverly Hills based Hawkins Way Capital as the buyer and notes the firm manages roughly $3 billion in assets. The outlet reports that the seller was an entity tied to the Lokshin family and landlord Simon Fouladian. That coverage also states the student-housing portion is expected to remain in place, while the future of the free-market apartments has not been spelled out.
What's in the building
StreetEasy lists 81 East Third Street as a 13-story rental with 45 units and notes that the building was completed in 2003. BKREA’s offering materials on Crexi put the property at roughly 36,047 square feet and market a mix of student suites and free-market apartments. The New York Conservatory for Dramatic Arts lists 81 East Third Street as its Manhattan residence hall, indicating that a substantial share of the building’s beds are reserved for students.
Neighbors and ownership history
Commercial Observer reports that the seller, 81 East 3 Street Realty, is linked to the Lokshin family and Simon Fouladian, and notes that a 2005 redevelopment of the site sparked neighborhood complaints about the building’s height. That history helps explain why locals are likely to keep an eye on any new filings for renovations or changes in use. The outlet also reports that Hawkins Way did not immediately respond to requests for comment.
Where this fits
Industry coverage casts the purchase as part of a broader Hawkins Way push into Manhattan student housing, a trend recently highlighted when a L.A. investor snags $80 million UWS dorm. Investors have been converting hotels and institutional properties for student use or arranging sale-leaseback deals with schools to preserve beds while freeing up capital. The East Village property gives Hawkins Way another foothold near universities and transit hubs, where steady student demand helps support the investment thesis.
What comes next
BKREA brokers Bob Knakal and Ana Barrie are listed in the offering materials as the deal’s brokers, according to Crexi. For tenants and neighborhood groups, the immediate question is whether Hawkins Way will keep the dorm operation largely intact or pursue changes that add more student beds or otherwise reshape the market-rate units.
