Halstead Property

Alan J. Kersner
Chief Operating Officer, Executive Vice President, and Treasurer
Terra Holdings

Paul Gottsegen
President, Halstead Management Company
pgottsegen@halstead.com
(212) 508-7335

Terra Beefs Up Residential Management Arm

By Amanda Fung

Terra Holdings, the corporate parent of Halstead Management Co., is the latest real estate company to beef up its residential property management business. The company announced Thursday that it will manage an additional 4,000 units in 20 buildings through the asset purchase of property management firm Caran Properties.

Caran Properties will now be known as Caran Management, a division of Halstead Management. The deal is an asset purchase and not an acquisition, meaning that Terra bought Caran's management contracts and “goodwill” of the company, said a Halstead spokeswoman. Financial details of the deal were not disclosed.

Sherry Frankel, who founded Caran in 1988, will remain at the firm as an asset manager and adviser, and Paul Gottsegen, president of Halstead Management, will oversee Caran. The firm's employees and executives will move into Terra's headquarters at 770 Lexington Ave., leaving behind their office at 148 Madison Ave. Caran, which also has a brokerage division, had one agent who was asked to join Terra's brokerage Halstead Property, according to a spokeswoman.

“We are delighted to welcome Sherry, Martha and their team to our company. With their extensive real estate experience and impressive portfolio of Class A properties, we are confident that it will further complement our notable group of luxury cooperatives and condominiums throughout New York City,” said Alan Kersner, chief operating officer at Terra Holdings, in a statement.

As a result of the deal, Halstead will now manage more than 18,000 units in 108 buildings. Among the high-end apartment buildings that Halstead has picked up from the deal are 200 West End Ave., Place57, Sky House, The Astor and The Shepherd House.

Last year, Manhattan's largest manager of rental apartment buildings, Douglas Elliman Property Management, acquired Bellmarc Property Management to expand its portfolio. And a year before that, Cooper Square Realty Inc. merged with Brooklyn-based Wentworth Property Management.

Thursday, February 10, 2011