Annaly Provides $592M to Blackstone and Fairstead Capital for Multifamily Portfolio


Maryland-based Annaly Capital Management lent Blackstone (BX) Real Estate Partners VIII and Fairstead Capital $592 million for their acquisition of a 24-building multifamily portfolio in New York, according to several people involved in the deal.

Meridian Capital Group Senior Managing Director Drew Anderman arranged the five-year loan, which carries a Libor-based floating rate and interest-only payments for the full term.

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“I want to thank Drew Anderman and his team at Meridian Capital for their hard work and creativity in securing the financing for this acquisition, which we believe is one of the larger purchases of multifamily assets in New York City this year,” Fairstead Principal Will Blodgett said in a statement provided to Commercial Observer.

The multifamily portfolio contains 979 units, located throughout Manhattan’s Upper East Side, Chelsea, Midtown West, Midtown South and Murray Hill neighborhoods.

“This transaction is another example of the progress we are making in growing our commercial real estate business through high quality institutional relationships,” Kevin Keyes, president and “incoming chief executive officer” of Annaly, said in prepared remarks. “We will continue to utilize our balance sheet strength as a strategic advantage as we build out our commercial real estate platform.”

The partnership between Blackstone Group and Fairstead, a New York City-based real estate investor and asset manager, purchased the buildings from the Caiola family for $690 million last week, according to published reports.

“While this is our first commercial transaction with Annaly, we look forward to growing the relationship based on the quality of execution,” Michael Lascher, the global head of real estate debt capital markets at Blackstone, said in prepared remarks.