KKR to Buy Mixed-Use Brooklyn Tower for $240M
By Anna Staropoli July 31, 2024 11:38 am
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KKR has signed on with Dalan Management to buy Jenel Real Estate’s 43-story tower at 540 Fulton Street.
The joint venture agreed to drop $240 million for the Downtown Brooklyn skyscraper, dubbed The Paxton, according to The Real Deal, which first reported the news. The Paxton spans 136,000 square feet, and KKR is slated to take over the building’s 327 multifamily units.
It’s unclear if the deal also includes the property’s 100,000 square feet of office space. The sale of the tower’s 36,000-square-foot retail base is not included in KKR’s contract, per TRD.
KKR and Jenel Real Estate initially planned for the 540 Fulton Street sale last fall, but the transaction fell through, thanks in part to a lack of certainty in the market, TRD reported.
However, there may be a silver lining to that delay, as 540 Fulton is now ready for tenants. During KKR’s initial negotiation period, the Marvel Architecture-designed tower was not yet completed. Although the contract for the building’s purchase is now in effect, the time frame for the change in ownership remains unclear.
Newmark (NMRK)’s Adam Spies and Adam Doneger handled the deal. A Newmark spokesperson did not immediately respond to a request for comment.
A spokesperson for KKR declined to comment. A spokesperson for Jenel did not immediately respond to a request for comment.
This deal is not the first KKR has made in partnership with Dalan in Kings County. In June 2022, the two closed on 260 Gold Street, also in Downtown Brooklyn, for $225 million.
Closer to 540 Fulton, KKR also owns a 365-unit tower at 80 DeKalb Avenue, and the private equity company is continuing to build its multifamily portfolio. In June, KKR spent $2.1 billion for an 18-building multifamily portfolio of properties across the country.
Anna Staropoli can be reached at astaropoli@commercialobserver.com.
