Rialto Capital Provides $31M Refi for Lower East Side Multifamily Portfolio 

GAIA Real Estate Holdings has secured a $31.1 million loan to refinance a portfolio of mixed-use multifamily assets on Manhattan’s Lower East Side, property records show.

Rialto Capital Management provided the loan for four Gaia-owned properties encompassing 84 apartments and seven ground-floor commercial units, according to property records made public June 3.

JLL arranged the transaction with a capital markets team featuring Scott Aiese, Alex Staikos and Christopher Pratt.

“This portfolio was highly attractive to lenders as it benefits from strong, consistent demand driven by the Lower East Side’s vibrant culture, high walkability and proximity to major employment hubs,” Aiese said in a statement. 

The properties include 102 Norfolk Street, 106 Norfolk Street, 177 Ludlow Street and 99 Allen Street. The portfolio comprises 70 market-rate and 14 affordable apartment units with retail units consisting of a convenience store along with six food and beverage tenants, according to JLL. 

“We bought these buildings during Covid, when other investors were running away from the city—vacancy was high, concessions were the norm, and retail spaces were struggling,” Danny Fishman, co-founder and CEO of Gaia Real Estate, said in a statement. “Our business plan is to acquire during the down cycle of the market, create value for the building’s tenants and users, and sell when it is most advantageous to do so.”

Officials at Rialto Capital did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com