FOLLOW US

Columbia University has stepped away from ownership of a Bronx student housing property in a deal that blends real estate strategy with academic necessity—but students living there are not expected to face immediate disruption.

Fetner Properties and PGIM have finalized a $65 million acquisition of the 3260 Henry Hudson Parkway property—known as The Arbor—in Riverdale, according to the Commercial Observer. While ownership has changed hands, Columbia remains temporarily in place as a tenant under a sale-leaseback arrangement, keeping students housed for now. The lease terms were not disclosed.

The property’s total valuation was about $73 million, marking a notable repositioning of a campus-linked asset in New York City’s competitive housing landscape.

Financing and Future Conversion Plans

To structure the deal, Fetner and PGIM secured $47.6 million in acquisition financing and bridge funding. The capital will be used to upgrade and stabilize the nine-story building, which currently holds 126 student units.

Once Columbia’s lease expires, the new owners intend to convert the property into traditional residential housing, effectively shifting it from academic use to market-rate living.

The parties involved did not respond to requests for comment. The transaction was brokered by a Newmark team led by Adam Spies, Eric Roth, and Brett Siegel, with financing arranged by Jordan Roeschlaub and Max Ralby.

A Rare Exit for Columbia in NYC Real Estate Market

Columbia originally purchased the building in 2008 from L+M Development Partners for $67.6 million, when it was initially envisioned as condominium housing.

Today, the property functions as student housing, with apartments featuring in-unit washers and dryers. Residents also have access to amenities including a gym, playroom, bike storage, on-site parking, and a rooftop deck—plus a shuttle service linking them to Columbia’s Morningside campus.

The sale is unusual. Columbia is typically a net buyer or long-term holder of New York City real estate, standing alongside institutions like New York University as major academic landlords. Both universities benefit from significant property tax exemptions under state constitutional provisions.

Political Backdrop and Tax Debate Lingers

The deal also sits within a broader policy debate. Lawmakers in recent years—including then-Assembly member Zohran Mamdani—have proposed removing property tax exemptions for major universities and redirecting the funds to the City University of New York system. The proposal ultimately stalled, but the issue continues to surface in New York’s housing and education policy discussions.

For now, the transaction marks another high-stakes pivot in Manhattan-area student housing—where academic footprints and real estate investment often overlap like two competing maps drawn on the same city block.