RXR, Macquarie, Qatar Investment Authority Provide $261M for Manhattan Multifamily Portfolio
GO Partners, a joint venture between Black Spruce Management and Orbach Affordable Housing Solutions, has acquired a three-building, Class-A multifamily portfolio in Manhattan for $825 million from the estate of the late Sheldon Solow.
RXR, Macquarie Capital Principal Finance and the Qatar Investment Authority — through its subsidiary QH RE Asset Company — provided a $261 million preferred equity investment in the deal, RXR announced today.
Hudson Realty Capital advised RXR on the deal. Cushman & Wakefield (CWK) served as the broker for the investment.
“With decades of experience in structuring finance investments, RXR was able to provide an efficient financing solution for GO Partners in an accelerated timeline during a period where financing for such acquisitions and developments has been increasingly difficult to obtain,” Russell Young, executive vice president of RXR’s Investment Management Group, said in prepared remarks.
The buildings — One and Two Sutton Place and One East River Place — comprise 858 units and are currently over 96 percent occupied. Building amenities include doormen, fitness centers and indoor pools.
“Macquarie Capital Principal Finance acted nimbly alongside RXR to structure a creative financing package, despite challenging market conditions. We look forward to seeking more opportunities to deploy preferred equity consistent with our strategy of investing in best-in-class assets,” Thomas Dore, vice president of Macquarie Capital Principal Finance, said.
In a recent interview with CO, RXR CEO Scott Rechler spoke of the firm’s activity, including attractive opportunities the firm is seeing in the preferred equity space.
Officials at Qatar Investment Authority, Black Spruce Management and Orbach Affordable Housing Solutions did not immediately respond to requests for comment.
Emily Fu can be reached at firstname.lastname@example.org.