Macquarie Acquires Minority Stake in Brookfield’s Waterside Plaza in $800M Recap

`Tis the season for shopping, and Macquarie just put down some serious dollars in New York City. 

The firm has acquired a minority stake in Brookfield’s Waterside Plaza, sources familiar with the transaction told Commercial Observer. 

Macquarie — which executed the equity investment via its Macquarie Capital Principal Finance platform —  acquired a “slightly under 50 percent” stake in the Manhattan apartment complex, which is valued slightly above $800 million today, sources said. 

The Class A apartment complex at 20-30 Waterside Plaza, between the East River and FDR Drive, extends from 25th to 30th streets in Manhattan’s Kips Bay neighborhood. It spans more than 1.2 million square feet and its 1,471 residential units are dispersed across four 37-story towers.

MetLife is the existing lender and its debt is remaining in place in the transaction, sources said. 

Newmark’s Adam Spies, Adam Doneger, Michael Collins, Nick Scribani and Chris Kramer negotiated the deal. 

Brookfield Asset Management acquired Waterside Plaza in late 2021 from former New York Lt. Gov. Richard Ravitch for $525 million, The Real Deal reported at the time. Brookfield then undertook significant improvements at the property to upgrade it, allowing the recap to take place at the valuation it did. 

Ravitch, who died in 2023, was also a former chairman of the Metropolitan Transportation Authority. He built the apartment complex in 1974 through the use of Mitchell-Lama affordable financing before exiting the program in the early 2000s. That financing resulted in most apartments being market rate, according to TRD. 

The complex still enjoys a 99-year tax abatement that expires in 2098. 

Brookfield, Macquarie and Newmark declined to comment. 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com.