Bank of America Supplies $24M Acquisition Loan for Lower East Side Portfolio Buy

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Danny Fishman’s Gaia Real Estate has nabbed $24.3 million of acquisition financing for its purchase of a three-building, mixed-use portfolio on Manhattan’s Lower East Side, Commercial Observer can first report. 

Bank of America provided the loan toward Gaia’s $34.75 million acquisition of the three properties, which include 56 residential units and five retail spaces. The transaction marks the second for Gaia’s New York Metro Recovery strategy that aims to redeploy capital from its recent successful exits in the Sun Belt with expectations that Manhattan’s downtown rental market will experience tailwinds. 

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“We viewed this as the right price for a group of assets that fit within our New York Metro Recovery thesis and with such a compelling performance trajectory,” David Kusy, partner at Gaia, said in a statement. “This will be a great addition to our growing portfolio in New York City.” 

JLL Capital Markets arranged the financing on behalf of the borrower with a team led by Scott Aiese, Alex Staikos and George Kordahl. The JLL Capital Markets also marketed the property on behalf of the seller with an investment sales team led by Bob Knakal, Guthrie Garvin, Jonathan Hageman, Jack Norton and Jacob Russell.

“Despite inflationary headwinds, the New York City multihousing market continues to be an attractive opportunity for savvy investors and sellers looking to capitalize on historic apartment demand as the city continues to prove its resilience and appeal as a world-class place to live, work and play,” Garvin said in a statement. 

Located at 102 Norfolk Street, 177 Ludlow Street and 99 Allen Street, the portfolio is situated near subway stations that service the J, Z, F, M, B and D trains. All three buildings are situated  within a three-block radius.  

“This is a high-performing portfolio of mixed-use assets located in a premier New York City neighborhood,” Aiese said.  “The borrower is well positioned to capitalize on the upward pressure inflation continues to place on apartment rents.”

Officials for Bank of America did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com