NEW YORK CITY—Brookfield Property Partners has signed a contract to acquire a 3,962-unit portfolio of apartment buildings in Upper Manhattan, the company said in a public filing last week. Acquiring the portfolio would increase the value of its residential holdings by about a third, according to The Real Deal.
Brookfield did not identify the portfolio by name or give the purchase price, but this Spring it was reported that the company was looking to buy the 3,962-unit Putnam portfolio from the New Jersey-based landlord Urban American and other investors for about $1 billion. Sources say the investors include the government sponsored home financing company, Fannie Mae.
Brookfield is developing residential units as part of its Manhattan West project in Hudson Yards, and an affiliate has been in negotiations to carry out a non-eviction condominium conversion at the 11,000-unit Stuyvesant Town and Peter Cooper Village, the Real Deal notes.
Ric Clark, Brookfield CEO, mentioned the Upper Manhattan purchase on the company's second-quarter earnings call last week. “In July, we executed definitive agreements to acquire a 4,000-unit multi-family portfolio located in Manhattan,” he says, “[which] had a very attractive evaluation relative to replacement cost.”
Brookfield intends to invest slightly more than $100 million as part of a total equity investment in the deal of $320 million, the company reports. The Putnam portfolio has several addresses, including 3333 Broadway, which has 1,193 units; Roosevelt Landings at 510-580 Main St. on Roosevelt Island, 1,003 units; River Crossing at 1940-1966 First Ave. and 420 East 102nd St., 761 units; Heritage at 1295 Fifth Ave., 600 units, 1309 Fifth Ave. and 1660 Madison Avenue; and the Miles and the Parker at 1890 Lexington Ave. and 1990 Lexington Ave., with a total of 405 units.
With the purchase, Brookfield will increase the number of apartments it owns in the US from 22,246 mainly garden-style apartments in 12 states to more than 26,000. But it will grow the value of the portfolio by far more. The current multifamily portfolio is valued at about $3.3 billion, with Brookfield's share worth $865 million, according to Brookfield's public filings. This would increase the value of the portfolio by about a third, to $4.3 billion.
In addition, the company has other residential projects on its plate, Clark said. “We are excited about our plans to launch construction of an 850-unit multi-family tower at our Manhattan West development late this year,” he said on the earnings call.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
