Ares to Buy 75% Stake in Hell’s Kitchen Apartment Building Valued at $270M
By Isabelle Durso November 5, 2024 5:03 pm
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Ares Management (ARES) is set to buy a majority stake in a Hell’s Kitchen apartment building in a deal valuing the property at $270 million.
The investment manager has entered into a contract to purchase Mitsui Fudosan’s 75 percent stake at 525 West 52nd Street, according to The Real Deal. Taconic Partners, which holds the other 25 percent share in the building, will keep its stake.
Once the deal is complete, Ares will assume Wells Fargo’s $200 million loan on the 392-unit building between 10th and 11th avenues, TRD reported. The loan will hit maturity in 2028.
Monthly rents at 525 West 52nd Street range from $3,669 for a studio up to $8,752 for a high-floor two-bedroom with a Hudson River view, according to StreetEasy. Building amenities include a rooftop sundeck, a fitness center, a yoga studio, a screening room, and a sports lounge featuring billiards and golf simulators.
Newmark’s Adam Spies and Adam Doneger, who TRD reported brokered the deal, did not immediately respond to requests for comment. Ares declined to comment, while spokespeople for Mitsui Fudosan and Taconic did not immediately respond to requests for comment.
The deal follows Ares and Douglaston Development’s $116 million investment in July for a Hudson Yards apartment building at 311 11th Avenue, as Commercial Observer previously reported. That property has a total of 938 units and 14,495 square feet of ground-floor retail space.
And it’s not just Ares making moves on New York City’s multifamily buildings.
In February, the Gotham Organization and Carlyle Group paid $265 million to the Kalimian family for the 43-story luxury residential tower at 200 West 67th Street, as CO previously reported. And, in a smaller purchase, the Doe Fund bought a newly constructed residential site at 2738 Creston Avenue in the Bronx for $26 million in September.
In other deals this year for Ares, the firm paid $147 million for a new industrial complex in Florida’s Miami-Dade County at 9535 Northwest 174th Street in October and also bought a 284-unit property in Boca Raton at 5205 Congress Avenue for $139.7 million in May.
Isabelle Durso can be reached at idurso@commercialobserver.com.
